Family Legacy: Relationships
Family relationships can be strained when money is involved, especially when dealing with an inheritance. Having an experienced, unbiased third-party executor or trustee of your estate is an excellent way to avoid family disharmony. We highly recommend that you preserve important relationships by appointing an experienced professional to act as executor or trustee.
What is a Trust?
A trust is a separate legal entity that holds property or assets for the benefit of others. It provides a way to pass on assets and property to family, a favorite charity, or college alma mater. This can be an appealing way to protect assets, avoid probate, minimize taxes and control or manage your financial legacy.
The primary benefit of a trust is the control it provides to you during incapacitation or after your passing. Your wishes are facilitated through the trustee, who is authorized to follow the terms of the Trust Document in determining who will receive your assets and when they will have access to them.
Other benefits may include:
- Avoiding probate, which typically allows you to pass on your assets quickly and privately.
- Minimizing estate taxes, if applicable.
- Facilitating management of your affairs if you become incapacitated or ill, and possibly preventing a court ordered conservatorship.
- Helping protect your financial legacy from your heirs' creditors and in some cases from irresponsible decisions that the heir may make if the assets were left to them outright.
What is a Trustee?
A trustee is an individual or entity given power to administer property or assets as outlined in a Trust document, with a legal responsibility to administer solely for the purposes specified and for the benefit of a beneficiary. This individual or entity acts as a guard to protect your assets. This role is an extremely important component of your estate planning. Your choice of trustee greatly impacts how your estate plan will be followed and how your financial legacy will be handled.
The Bank of Commerce Trust Services does not provide management or financial advice. We work directly with your family's advisors. As the trustee, we oversee investment activities to ensure assets are invested in accordance with the guidelines of the trust document or in a prudent fashion under state law. With this delegated relationship a trustee and advisors work in your best interest and create a system of checks and balances.
What is a Co-Trustee?
Co-trustee is the title given to multiple trustees of a trust. Usually the co-trustees have equal rights and powers unless the Trust Document specifically outlines the duties and role of each co-trustee. The Bank of Commerce is willing to serve as co-trustee upon review and approval of the Trust Document.
What is a Directed Trust?
In a directed trust the trustee receives direction from a number of appointed trust participants such as an investment advisor, distribution advisor, or trust protector. In these relationships the trustee typically has limited discretion pertaining to the actions of the trust. The Bank of Commerce is willing to serve as a directed trustee and provides a discount upon review and approval of the Trust Document.
Other Types of Trusts
- Irrevocable Trusts
- Revocable Trusts (Living Trust)
- Special Needs Trust (Supplemental Needs Trust)
- Dynasty Trusts
- Asset Protection Trusts
- Credit Shelter Trusts
- Bypass Trusts
- Marital Trusts
- Qualified Terminal Interest Property (QTIP) Trusts
- Generation Skipping Transfer Trusts
- Irrevocable Life Insurance (ILIT) Trusts
Nonbank products are not FDIC insured, are not a deposit and are not insured by any federal government agency.
Additionally, nonbank products are not guaranteed by the Bank and are subject to loss of principal