Peace of Mind with a Revocable Trust
Revocable Trust Overview
A Revocable Trust is a legal arrangement where you transfer ownership of your property into a trust while maintaining control of the assets during your lifetime. If you become incapacitated or pass away, your named successor trustee will manage and distribute your assets according to your instructions.
Benefits of a Revocable Trust
- Maintain control of your property during your lifetime.
- Receive income and principal from trust assets.
- Ensure uninterrupted asset management in case of incapacity or death.
Creating and Funding the Trust
- Drafting the Trust: Prepared by an attorney. Our team can work with your attorney to help facilitate this process.
- Transferring Assets: Only assets placed in the trust are governed by it. We help ensure assets are transferred efficiently.
- Maintaining Control: You may serve as the initial trustee or Co-Trustee.
- Revocability: You can amend or revoke the trust at any time. Just like a will, you retain the power to revoke or amend the Trust at any time.
Upon incapacity or death, the trust becomes irrevocable, and the Successor Trustee(s) assumes responsibility.
Why Choose a Corporate Successor Trustee?
Infrastructure & Capacity
- Advanced record-keeping and tax reporting systems.
- Professional investment platforms and market analysis tools.
Longevity
- Corporate trustees provide continuous service—no retirement or incapacity.
Objectivity
- Unbiased decision-making, free from family dynamics.
Experience & Expertise
- Teams of legal, tax, and investment professionals. Our team continuously completes ongoing training and education to ensure professional expertise.
- Daily trust administration with full regulatory compliance. We engage a 3rd party Auditor annually to conduct a full review of our Department. We also undergo examination by the Iowa Division of Banking and the Federal Reserve every other year.
Attentiveness & Recordkeeping
- Accurate financial statements and asset reporting. As fiduciaries, we are responsible for ensuring accurate and timely reporting to all interested parties.
- We utilize software designed for trust administration.
- Reduction of Expense and Fee Transparency
- While Corporate Fiduciaries are often perceived as an expensive option, it’s important to remember that individuals are also entitled to compensation when acting as a Trustee and often incur additional fees from outside investment managers, bookkeepers or other advisors.
- We fully disclose our fees and expenses to beneficiaries and are bound by laws and regulations to ensure reasonable fees.
- In addition, asset management and record-keeping fees are incorporated into our Trustee fees.
- Streamlining administration often results in less overall expenses and mitigates the risk of court involvement and increased attorney fees.
Peace of Mind
- Reliable, professional management of your legacy.
In Case of Incapacity
Your Successor Trustee(s) will:
- Manage trust assets without court involvement. If properly funded, no estate administration and no Court involvement is needed reducing time and expense to facilitate transfer of your wealth.
- Pay bills and medical expenses.
- File tax returns.
- Manage assets for long-term growth
- Provide financial reports to beneficiaries
A Revocable Trust avoids the delays and costs of court-appointed conservatorship.
Upon Your Death
The Successor Trustee will:
- Distribute assets per your instructions in the Trust agreement.
- Coordinate with heirs and other advisors to ensure a smooth transition.
- Gather assets, obtain valuations, facilitate any transfers or sales (including personal property and real estate).
- Settle any debts and claims.
- File final tax returns.
- Maintain privacy (trusts are not public records).
- Continue your wishes. If your Trust provides for distributions to beneficiaries over time, we continue to administer the Trust. This may include provisions that allow beneficiaries to access income during lifetime and principal over the course of their life. This can be impactful for:
- Minor beneficiaries. Your trust continuation can allow us to ensure wealth is distributed in a way that sets up your beneficiaries for long-term success.
- Special Needs beneficiaries. If drafted appropriately, a Trust can allow distributions to be made without jeopardizing government benefits.
- Asset protection. If assets remain in trust they may be protected from Creditors of your beneficiaries, including mitigating the risk that assets are included in event of divorce.
A Revocable Trust eliminates probate, ensuring efficient asset distribution.
Advantages of a Revocable Trust
- Built-in Disability Planning: Immediate trustee transition.
- Privacy Protection: Trusts are private documents.
- Financial Institution Recognition: Widely accepted by banks and firms.
- Continuous Asset Management: No freeze during probate.
- Avoidance of Probate: Faster, more efficient distributions.
- Dual Purpose: Serves as both a will and disability plan.
- Simplified Distribution: Clear and structured asset transfer.
- Long-term wealth transfer.
- Protection from Creditors not available with outright transfers to your beneficiaries.
Conclusion
A Revocable Trust allows you to:
- Retain control of your assets.
- Ensure professional management during incapacity. This reduces the risk of fraud or being taken advantage of during a time of incapacity.
- Provide seamless and thoughtful distribution to heirs.
- Remove the emotional burden on family or friends.
With increasing life expectancy and rising incapacity risks, a Revocable Trust offers security, privacy, and peace of mind. Choosing a corporate trustee ensures expertise, continuity, and impartiality in managing your legacy. While we often serve as sole Successor Trustee, we are willing to act alongside a trusted family member or friend. To start the conversation, contact us for a complimentary consultation.
