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If you have a private bank that you work with, you may be encouraged to look into a private bank trust. This trust is often considered better than an actual will. Many fail to understand what a trust is, and how it could be beneficial. There are a few fundamentals to understand about a private bank trust. Understanding what you can about a trust will help you to realize how important this could be for your estate.
What Is a Trust?
A trust is basically a grouping of your assets into a separate entity. All of your assets are grouped into a trust, which is then controlled by you. Instead of owning the assets, you control the trust. The trust continues on after death, meaning that you can appoint someone who will take over once you no longer run the trust. The trust will hold multiple assets including basic financials, stocks, full portfolios, and savings. The trust is the best way to combine all of your assets.
Moving Assets to a Trust
When you begin a trust, you are moving all of your assets to another part. Often, this is the private bank. The private bank trust is controlled by you until you willfully move the trust to another individual. Contracts help to make sure that this cannot be altered. You “trust” the financial institution by giving them ownership of your assets. You, however, are the only one who can control these assets. While the private bank holds these assets for you, they can only follow your own instructions.
Setting Instructions
A trust can be had by those who are living. They will want to give instructions on the trust for when they pass, or when they move the trust to another individual. Any instructions that are set for the initial trust must be followed by any future trustee, unless stated otherwise. This means that you can set specific payments, specific people for payments, and specific control of various portfolio items.
Setting a Trustee
Those who have a trust will set a trustee. They will be the trustee themselves until they give control of the trust to another. Generally, those who are still living are the trustee, and will appoint someone to take over upon their death.
Who Needs a Trust?
Not everyone needs to have a trust. Generally, trusts are had by those who have at least half of a million dollars in assets. Anyone with this sum of money will want to ensure that their assets are taken care of to their standards both during and after life.
Nearly every wealth management company will have a trust service. This service will help you to set up your trust, and will help to execute your trust at the necessary time. The trust will help to keep all of your financial assets in one place, making it easier to control once the trust has been put into place.
Understanding Private Bank Trust Fundamentals
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