Whether for asset protection, estate planning, charitable purposes or any of the other many reasons to establish a trust, Home State Bank has the experience and knowledge to help you through the process.
Youíve spent your life time accumulating assets. Now it is time to secure those assets for the transition to your future heirs; a trust might be the tool necessary to accomplish your goal.
What is a trust? A trust is a legal document that you and your attorney create that details how the assets held in that trust will be managed both now and in the future, including after your death. A key difference between a trust and a will is that a trust details both the accumulation and distribution of assets during your lifetime and upon your death. Assets held within a trust are free from the probate process which can take up to two years. The type of a trust varies according to the need and desired results. Some of the reasons to consider establishing a trust are for estate planning, providing for your family, reducing tax liability, asset protection, special needs and charitable giving.
Who benefits from a trust?
Outlined in your trust agreement will be your instructions for investment, accumulation and distribution of assets if you become unable to manage your affairs and after your death. Typically one spouse passes away before the other, leaving the surviving spouse to manage the home and the estate. If only a will is established, then the entire estate must go through probate - a process that can take up to two years. Having a trust in place can avoid the expense and challenges of probate for the surviving spouse. For those people in higher tax brackets a trust can greatly reduce the amount of estate tax owed.
When set up properly, a trust protects your assets and provides for ongoing investment management of your portfolio, while also letting you enjoy your wealth during your lifetime.
Choosing the right trustee is a critical choice. Trust laws are complex and frequently change. In order to do the job properly a trustee needs to stay current on these laws. Trustees must give an accurate account on the receipt and distribution of income and principal of trust assets. Preparing and filing the annual trust income tax returns, both federal and state, is another responsibility the trustee oversees. Sometimes family members are unable to remain objective and the emotional toll it can take on them is difficult. Letís face it, life happens and family situations change due to age, sickness or employment. By having Home State Bank and our Trust Department act as trustees you can ensure continuity during the full term of the trust.
As Trust Officer, Deb Walker has a tremendous amount of experience and her strong working relationship with our local attorneys is an added bonus.