Mid Penn Bank's Trust Department was organized in 1931 to provide services to help people accumulate, preserve and distribute assets. NEBCO is the legal name under which Mid Penn Bank's Trust Department operates.

Mid Penn Bank administers several types of trusts. Please take a minute to review the Trust and Financial Services we offer.

Trust Administration
Careful planning is necessary to ensure that your money is distributed as you desire. Trusts are an excellent option for establishing financial security for you and your loved ones. Mid Penn Bank administrates several types of Trusts, including Living Trusts, Testamentary Trusts and Irrevocable Trusts.

Living Trusts - With a Living Trust, you decide which of your financial assets you'd like for us to manage, saving you time for the more important things in life. A Living Trust functions during your lifetime, paying income to you or any beneficiary or beneficiaries you designate. A Living Trust can continue for your family, friends or charity upon your death. Living Trusts can be set up as either Revocable or Irrevocable. A Revocable Trust is one that can be revoked or cancelled by the maker. An Irrevocable Trust is a Trust that cannot be revoked.

Testamentary Trusts - Trusts Under Will or Testamentary Trusts is one of the most common types of personal Trusts. A Testamentary Trust is usually established in accordance with your Will and goes into effect upon your death. Any property not distributed directly to heirs passes to the Bank, as your assigned Trustee, with special instructions already decided by you as to how the income and principal should be distributed between family, friends, organizations, etc.

Estate Planning/Administration - Mid Penn Bank, in cooperation with your attorney can assist in your estate planning and may be named as your Personal Representative/Executor to settle your estate in a knowledgeable and professional manner. When a person dies, the total sum of all his or her assets is known as an Estate. By naming Mid Penn Bank as the Executor or Co-Executor of your estate, the Bank is responsible for collecting and making an inventory of assets, paying creditors, paying inheritance taxes, accounting for all financial transactions regarding the estate and distribution of the remaining assets to those legally entitled to them. The Bank carries out the wishes of your Last Will and Testament, including the distribution of property and assets.

Self-Directed IRAs - With a Self Directed IRA, a customer can select the assets he wants to invest in for his/her retirement.

Guardianships - Guardianships can be established by a court order for the benefit of a minor or incapacitated person. A Guardianship may also be established voluntarily by an individual who asks a court for assistance. The Bank acts as Guardian of an Estate only. A Guardian of an Estate receives, holds and manages assets for the benefit of a minor or incapacitated person. The Bank will not serve as a Guardian of a Person.

Financial Planning - Our Trust Officers can advise you, as well as clarify your personal financial goals. We recognize that every situation is unique and that different people have different goals.

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Mid Penn Bank's Trust Department staff will work with you, whether you are an individual, organization or corporation, to develop comprehensive investment strategies. Our focus is on developing and implementing an asset allocation plan that properly balances investment objectives and risk tolerance.

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Plan for retirement wisely with an Individual Retirement Account (IRA). Changes in regulations have allowed the introduction of two additional types of non-deductible IRAs in addition to the Traditional IRA, which may be tax deductible.

An Individual Retirement Account or IRA is a special savings plan authorized by the federal government to help you accumulate funds for your retirement. Anyone is eligible to contribute to an IRA provided you have earned income or receive alimony and have not reached the age of 70 1/2. Income from sources such as inheritances would not qualify, as it is unearned income.

Depending on the IRA you choose, the interest you earn may be tax deferred or tax-free and the contributions you make may be tax deductible. Consult your tax advisor.  

Traditional Deductible IRA

• Contribute up to $4,000 for tax year 2007
• Additional $1,000 catch-up contributions can be made by qualified individuals over 50
• Contributions may be tax-deductible
• You can also make non-deductible contributions
• Income taxes are deferred until funds are withdrawn
• Withdrawals permitted after age 59 1/2
• At age 70 1/2, systematic withdrawals must be taken from account
• 10% IRS penalty for early withdrawals prior to age 59 1/2 (with some exceptions to this rule)
• Can establish beneficiaries for the account when account is opened

Spousal IRA
If you are a married couple with one non-employed spouse, you may choose to open a Spousal IRA. To qualify for a Spousal IRA, you and your non-employed spouse must file a joint tax return.

• You can open each account with a maximum contribution up to $4,000 for tax year 2006 and 2007
• If you and your spouse are not active participants in an employer sponsored pension plan or profit sharing plan, you can deduct 100% of your IRA contribution regardless of income level. If you are an active participant in an employer sponsored pension plan or profit sharing plan, your IRA contribution deduction will depend on your level of adjusted gross income.

Roth IRA

• Contribute up to $4,000 for tax year 2007
• Additional $1,000 catch-up contributions can be made by qualified individuals over 50
• Contributions are NOT tax-deductible.
• Tax-free and penalty-free withdrawals (based on certain criteria).
• Tax-free earnings (based on certain criteria).
• Withdrawals permitted after age 59 1/2 without penalty.
• Continuing contributions at any age, no requirement to withdraw at any age.
• Funds can remain in the account during the account owner's lifetime.
• Can establish beneficiaries for the account when account is opened.
• Can use funds for college expenses, first-time home purchases up to $10,000, certain medical expenses and certain other circumstances without 10% IRS penalty.
• You can convert a Traditional IRA to a Roth IRA using special rules.
• All earnings you accumulate in your Roth IRA remain tax sheltered until withdrawn, and if the earnings remain in the account for a period of five successive tax years, they can be withdrawn tax-free. There are certain criteria that must be met to enjoy tax-free and penalty-free distributions.
• Anyone is eligible to contribute to a Roth IRA provided you have earned income or receive alimony. Income from sources such as investments or inheritances would not qualify. The full Roth IRA contribution is available to couples with incomes of up to $156,000 and singles up to $99,000.
• You may be eligible to make a partial contribution to a Roth IRA if you are single and your income is between $99,000 to $114,000 or if married, filing jointly, if your income is between $156,000 to $166,000.

Coverdell Education Savings Account
A Coverdell Education Savings Account (ESA) is not really for retirement but for post-secondary education expenses.

• Contribute up to $2,000 per year, per beneficiary.
• Can contribute every year until beneficiaries reach age 18.
• Contributions do not affect your ability to contribute to a Traditional or Roth IRA.
• Contributions are NOT tax-deductible.
• Earnings are tax-free if used to pay for the account beneficiary's tuition, fees, books, supplies, equipment, room or board at an eligible college or vocational school.
• Virtually anyone can contribute.
• Funds must be disbursed or rolled over to a new beneficiary by the stated beneficiary's 30th birthday.
• 10% IRS penalty on any funds not distributed or rolled over by beneficiary's 30th birthday.
• Must make contributions by December 31st of each year.
• For more information about how we may help you, please schedule a free consultation with one of our specialists listed below or choose to e-mail your request:

Call Toll Free: 1-866-6HAPPEN

Michael Lehmer, V.P. & Senior Trust Officer
Jean Lauver, Assistant Trust Officer
Alice Camerini, Trust Administrative Officer
Denise Lepley, Retirement Savings Specialist

E-Mail A Request

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