Protecting Wealth: Trusts and Trustees
Revocable vs Irrevocable Trusts
Instead of simply relying on a will, many people create a revocable trust that contains key provisions of their estate plan. A funded revocable trust maintains privacy during estate settlement and can help your family reduce or completely avoid probate. However, these trusts do not provide asset protection or tax benefits in and of themselves.To protect your wealth and your family, consider instead providing that some or all of your assets be held in continuing irrevocable trusts for your intended beneficiaries. Here’s why: assets left outright at death become the recipient’s own property and are potentially subject to the claims of any creditors the beneficiary may have in the future. Leaving assets in a trust reduces the likelihood that a divorcing spouse, ex-spouse, or other creditor will be able to claim any interest over the inheritance.
Naming a Trustee
Your named trustee will ultimately be responsible for investing and managing trust assets, filing tax returns, paying bills, and making distributions as permitted by the trust agreement. Serving as a trustee can be a burden; it’s time-intensive, and trustees have potential liability from their personal assets if they’re found to have breached a fiduciary duty. In many cases, this is not a role that a family member should assume.
Without careful planning and an impartial trustee, children can end up disinherited, or conflicts of interest can arise that will threaten family harmony. For blended families or beneficiaries with any kind of special needs, substance abuse issues, or tendencies to spend irresponsibly, a professional trustee can be invaluable. Even if your family situation is relatively ‘easy,’ you’d be shocked at how quickly conflict can arise when one family member is given control over the finances of others.
United Community Private Wealth
If you’re interested in seeking professional management, our private wealth team offers a full spectrum of fiduciary services, including the ability to serve as trustee or co-trustee with an individual. Our trust officers will develop personal relationships with your beneficiaries over time, and they will work closely with our portfolio managers to grow trust assets for future generations. We can also be named as a personal representative to settle estates for clients.
To learn more about customized wealth management solutions, visit ucbi.com/private-wealth or connect with a private banker.
Asset and wealth management, estate and retirement planning, investment management, and trust and fiduciary services are offered through United Community Bank. Investing involves market risk, including possible loss of principal, and there is no guarantee that investment objectives will be achieved. Past performance is not a guarantee of future results. Non-deposit products and services are not FDIC insured. United Community Bank is not a broker-dealer or registered investment advisor. Investment products are:
| Not Insured by FDIC or Any Other Government Agency | Not Bank Guaranteed |
| Not a Bank Deposit or Obligation | May Lose Value |
