LANSING, Mich. — Since its roll out in 2005, it's been a slow yet steady stride for trust services at NuUnion Credit Union but that has been the expectation from the beginning and it will continue to be the case at least for the next decade.

Industry experts say it can take up to ten years to build a solid trust services operation and to see returns. The $802 million NuUnion is pleased with its progress over the past two years having formed 30 account relationships with a little over $1 million in assets under management, said Chris Day, senior vice president of marketing. NuUnion partnered with MEMBERS Trust Company in 2005.

“We have about 30 different members that have come through on referrals, from staff or through seminars,” Day said. “We know it will take years to establish good, solid relationships.”

What has helped is the growing network of local attorneys NuUnion has linked up with over the years, Day said. The credit union currently works with ten and is planning to extend alliances to even more. NuUnion is very selective about the attorneys it works with, Day said. Staff or existing clients will typically make a recommendation but the credit union follows up with an extensive list of qualification questions such as what percentage of business is devoted to estate planning, years of experience and determining whether an attorney's pricing is “fair.”

Day said the MEMBERS Trust partnership has been an amicable one with the nationally-chartered company being instrumental in helping to educate members on what is available to them and what their hidden estate planning needs might be. In addition, NuUnion conducts a wide range of financial planning seminars throughout the year, which have led to referrals to the credit union's trust liaison officer, Russ Steiner. Steiner provides the expertise on everything from living trusts and estate settlements to managed agency accounts and custody accounts. Steiner has also been the point person for training staff on how to spot cues in conversations with members that trust services might be an option to consider.

“It can be someone with substantial assets that has started talking about retiring or someone considering how they want to plan their estate,” Day said. “Russ listens with a fine-tuned ear.”

NuUnion members using trust services are all over the gamut with most requesting alternative investments and corporate trusts, Day said. Members need only have a minimum of $50,000 in assets to use trust services at NuUnion, far less than the average $1 million threshold some banks require. While some may walk in the door thinking they need estate planning, sometimes they just need a safe place to park excess funds, Day pointed out.

Meanwhile, Michigan's economy has taken a beating over the past few years with layoffs, budget cuts and plant closings. Day said trust services have not been impacted but overall investment planning has felt the effects.

“People seem to have been hesitant to give up their money and like the security of insured funds,” Day said.

Over the next few years, Day said NuUnion will continue to build in all ways from training to educating members. Some staffers have even set up trusts of their own, he added.

Indeed, the inter-generational wealth transfer, which has estimated at $20 to $25 trillion during the next 20 years, has arrived, according to “Capturing the Inter-Generational Wealth Transfer: Trends and Case Studies,” a June 2007 CUNA Lending Council white paper. Baby boomers, born between 1946 and 1964, are starting to retire and are asking their credit unions for financial planning as well as wealth management services. In that mix, some in the industry say, is a trust services niche not being served by banks.

“We will continue to build on what we've established, continue to work with attorneys and build more alliances and continue to educate staff and especially the members that we are here and we offer these [trust] services,” Day said.

–msamaad@cutimes.com

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Slow and Steady Aims to Win the Race for NuUnion Credit Union's Trust Services Program

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