Pursue a goals-based approach to investing that’s consistent with your objectives and intent.
A trust is a legal contract between at least two parties: a grantor and one or more trustees. It can give you peace of mind that your family’s wealth is managed the way you want. It can also fund goals for future generations, like going to college or investing in property. You can even set up a trust for a charity you support, to keep your legacy going long after you’re gone.
Having a trust helps to ensure your wealth is used the way you’d like it to be, both now and for years to come. In certain circumstances, trusts may also create other benefits such as tax efficiencies.
The grantor is the person who has assets (i.e., money, property) they would like a trustee to hold for the benefit of one or more beneficiaries.
A trustee is appointed in the trust document and manages the trust for the benefit of one or more named beneficiaries.
The beneficiary is often a child or another relative, but a grantor can choose multiple beneficiaries – or even institutions such as charities or schools. There can be current beneficiaries who are entitled to payments from the trust now, and future beneficiaries (also called remainder beneficiaries) who are entitled to benefit from the trust in some way in the future.
If the trustee is a bank or other financial institution, a trust administrator will generally be assigned to your trust account to ensure proper administration. The trust administrator is also often called a trust officer.
Many grantors choose a corporate trustee to manage their trusts and settle their estates. For example, U.S. Bank has been administering trusts as a corporate trustee for over 100 years. Here’s what a corporate trustee does:
Settling an estate can take an emotional toll after a loved one’s passing. A corporate trustee provides services to settle an estate, which otherwise can be a complex, time-consuming and stressful process.
During an emotionally charged time, a corporate trustee plays the role of an objective party who takes into account the interests of relatives, close friends and other beneficiaries.
A corporate trustee is an independent fiduciary partner. Typically, a grantor works with a single point of contact who has access to experts in a wide array of related services.
When you create a trust, you set up ways to take care of the people you love when you’re no longer able to.
Naming your trustee is a critical step in setting up a trust.
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