A Living Trust, or inter vivos trust, can be more advantageous than a Trust Under Will because it avoids the probate process and becomes operative during your lifetime. To set up a living trust, you transfer some of your property (i.e., stocks, bonds, real estate or cash) to a trustee who then administers your trust.
During your lifetime you can name yourself trustee with First Bank & Trust being named as successor trustee to take control and administer your trust after your death. At your death, your living trust can continue without probate for the beneficiaries in your trust document.
Benefits of a Living Trust
- You see your estate plan in action during your life and can modify it as you see the need.
- The property in it passes per the terms of the document to the successor beneficiaries and avoids probate.
- Unlike a Will, a Trust and the contents of your trust estate remain confidential and are not disclosed in public records.
- It can free you, at any time you so decide, of the burdens of managing investments and keeping records.
- Set in motion your financial plan with your estate plan relative to the personal decisions you have made dealing with aging issues and quality of life.
Revocable Living Trust
Could the financial plans for your assets change during your lifetime? A revocable living trust gives you full power to revoke the trust or amend any and all of the terms of the trust. Not only can you retain the right to revoke the living trust at any time, but you can also withdraw assets, direct and control investments, and change the provisions and beneficiaries of the trust.
Help reduce your taxable estate during your lifetime.
Unlike a revocable living trust, an irrevocable trust cannot be modified or terminated. While this restricts you, the grantor, from control of the trust for its duration, an irrevocable trust is very tax advantageous. Benefits of an irrevocable living trust include:
- Can reduce the size of your taxable estate by effectively transferring ownership
- Reduce your income taxes
Life Insurance Trusts
This irrevocable trust utilizes your life insurance policy as the trust’s asset. At the time of your death, the insurance proceeds are payable to a trustee who handles them for your family in the manner specified in the trust document. In doing so, the proceeds of your life insurance policy may be exempt from your taxable estate provided all the necessary conditions are met.
Personal Trust Accounts & Executor Fee Guidelines
Please contact one of our Wealth Management professionals for more information regarding personal trust account management and executor fees.
Investment and Advisory products:
NOT FDIC INSURED • NOT BANK GUARANTEED • NOT A DEPOSIT • MAY LOSE VALUE.
Trust Agreements are legal contracts and as such need to be prepared by a skilled professional. You should always consult with your attorney to assure proper drafting and that the uses of tax advantaged trusts are correctly integrated into your estate plan.