Is a Trust Right for Me?

posted 9/25/2015 in Trust

We’ve discussed the basics of Trusts and how they are commonly used to distribute assets to loved ones.  With that in mind, we will explore examples of when a Trust may be right for you.

Beneficiaries who Lack Financial Expertise:  In some situations you may have a concern that your beneficiaries (perhaps your spouse or children) may not have the financial savvy or experience to handle assets they stand to inherit. Rather than your beneficiaries inheriting all of your assets at once, a Trust can allow you to distribute funds in smaller, consistent increments. This can provide a steady income stream to your beneficiaries, while also preventing them from spending the money all at once on an unwise financial transaction.

Additionally, you could even control how Trust funds are going to be spent.  Perhaps you might specify that disbursements from the Trust may only be made for rent or the educational needs of your beneficiaries.

Management of Assets at Incapacity: A Trust can become an effective tool for the management of your financial affairs should you become ill, disabled, or incapacitated.  If you have a Revocable Trust, the Trustee you have named can continue to manage your assets for the benefit of you and your beneficiaries. This Trustee, who can be another person or corporate fiduciary such as a bank’s trust department, will be directed by the provisions of the Trust which express your directives. Since you have already pre-selected your Trustee, you do not have to worry about the courts getting involved and appointing someone else to handle your financial affairs.

Assistance Managing Financial Affairs: You may reach a point in your life where you would benefit from assistance in managing your financial affairs.  Establishing a Revocable Trust can allow your Trustee to manage your investment portfolio, collect and disburse money on your behalf, provide for payment of your bills, and make distributions to you and your beneficiaries.  This shifts the burden of handling your financial affairs away from you.  Additionally, if you choose a Trustee with investment knowledge and experience, your investment portfolio may benefit as well.

The examples above are just a starting point when considering a Trust.  Keep in mind that Trusts are versatile and can be tailored to meet individual needs and objectives.   If you would like to learn more about how a Trust could benefit you, fill out this short contact form and one of our experts will reach out to you soon.

Not FDIC Insured | No Bank Guarantee | May Lose Value | Not a Deposit | Not insured by any Federal Government Agency

Information provided in this article is not intended to provide tax or legal advice. It is strongly recommended that you discuss your specific circumstances with your tax, legal, and financial advisors.

“Information provided by Nathaniel Tagtow, JD, Assistant Vice President & Trust Officer, Lincoln Savings Bank, 13523 University Avenue, Clive, 515-221-9876, nathaniel.tagtow@mylsb.com”
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