Deposit Trust Accounts
LGFCU offers both Irrevocable Trust and Revocable Living Trust deposit accounts. These accounts give legal instructions regarding how property/assets will pass to beneficiaries.
One benefit of deposit trust accounts is to provide the trustee with an easy method of managing and disbursing the trusts' property. There are also numerous estate and tax benefits you can obtain from having either account. We recommend that you consult an attorney if you have additional questions about which might benefit you best.
To open a deposit account owned by a trust, the trustee will need to provide appropriate documentation and the tax identification number for the trust.
What is an Irrevocable Trust Account?
An irrevocable trust cannot be cancelled or changed by the person creating it, formally known as the grantor.
- A trust is established by executing a trust agreement and funding the trust with specific assets.
- The grantor names at least one trustee to manage the assets in the trust.
- The grantor also names at least one beneficiary to receive assets from the trust.
- The trustee is responsible for managing and disbursing trust property according to the instructions in the document.
Three situations that can prompt the formation of an irrevocable trust
- A revocable living trust becomes irrevocable upon the death of the grantor(s).
- A trust is established and funded during the grantor’s life and designated as irrevocable.
- An irrevocable trust is created upon the grantor’s death and funded with specific assets from the grantor’s estate. This type of trust is known as a testamentary trust.
What is a Revocable Living Trust Account?
A revocable living trust allows the person creating the trust to modify or cancel it giving the grantor flexibility.
- A trustee controls the assets or funds in the account.
- Assets held in a Revocable Living Trust are not subject to probate.
Ensure your assets are distributed the way you want!