What is a Living Trust?
A living trust, commonly referred to as a personal trust, inter vivos trust, or revocable trust is an arrangement for the ownership of property, created by an agreement between a person (the “settlor” or “grantor”) and another person or institution (the “trustee”). The trust agreement typically provides that any property transferred to the trust will be managed for the settlor’s benefit or for the benefit of others they may designate. The settlor retains certain rights over the trust during his or her lifetime, including the right to change or revoke the trust at any time. In many jurisdictions (including Illinois), the settlor and the trustee can be the same person. In such cases, it is also common to name a successor trustee in order to insure continuity of management in the event or death or disability.
Why Name Resource Bank as Trustee or Successor Trustee?
Naming a corporate trustee rather than an individual ensures that a competent trustee will always be available to act in the settlor’s best interest. In other words, a corporate trustee does not die or become incapacitated, and we provide sound management for assets we administer so our clients can have peace of mind and freedom to pursue other interests.
Who May Want to Set Up a Trust?
Anyone. . .
- Wishing to avoid probate
- Needing an estate plan or inheriting substantial assets
- Having high net worth ($100,000 in investable assets, such as stocks, bonds, CD’s, etc.)
- Having substantial assets that create unnecessary taxes
Although we always recommend anyone wishing to establish a living trust see their attorney to prepare the trust agreement and other estate planning documents, we would appreciate the opportunity to meet with them to answer preliminary questions or concerns prior to their visit.
Benefits of Naming Resource Bank as Trustee
- Ensure trust continues on for heirs, or is distributed per clients’ wishes
- Provide financial accountability and confidentiality
- Manage and protect assets in the event of incapacity
- Impartial to family issues
- Freedom from personal bias