There are many types of trusts which can be designed to fit your needs. Generally speaking, trusts fall into two main categories:
Also called inter vivos trusts, a living trust is created during the lifetime of the settlor rather than at the time of the settlor's death. This type of trust allows the bank to serve you in many different ways and for different purposes. Examples would include:
- The bank can manage the trust assets for the settlor's benefit during his or her lifetime. This can be particularly helpful should the settlor become incapacitated.
- The bank can also manage the trust assets for other beneficiaries selected by the settlor. This could include family members with special needs, favorite charities, etc.
- If fully funded with the settlor's assets, a living trust can be used to dispose of the settlor's property at the time of his or her death, thus avoiding probate.
- A living trust can continue after the settlor's death, allowing the bank to continue its management for the benefit of subsequent beneficiaries.
A testamentary trust is created by the settlor's last will and testament. These trusts allow the bank to serve you in many different ways and for different purposes. Examples would include:
- It can be amended or revoked at any time prior to the settlor's death.
- It becomes irrevocable after the settlor's death.
- It can provide an ongoing way for the bank to manage financial assets or farmland for the benefit of the settlor's heirs.
- It can terminate based as specified by the settlor.
* Non-deposit investment products are not FDIC-insured, are not guaranteed by the bank and may go down in value.