Personal Trusts

Revocable Trusts (Revocable Living Trusts)

A revocable trust is an entity that is created by a person in order to transfer ownership in his or her assets while he or she is still living. Types of assets that can be transferred may include, but are not limited to, a home, other real estate, vehicles, stocks, bonds, and securities. A Revocable Trust, A.K.A. a Living Trust, serves as the owner of the property, while the person who created the trust (Grantor) enjoys all benefits during their lifetime. Once the Grantor passes away, all assets owned by the trust will be handled by the Successor Trustee named in the trust document. State Bank of Graymont, as Successor Trustee, will administer the trust account and carryout all instructions set forth in the document.

Benefits of a Revocable Living Trust:

• Receive all income earned from assets owned by the trust
  
• Reserve the right to withdraw assets from the trust
  
• Hold the right to amend, change or terminate the trust at any time
  
• Allows for a Successor Trustee to step in if Grantor becomes incapacitated
  
• Helps the Grantor avoid probate
  

Irrevocable Trusts

An Irrevocable Trust acts in a similar manner as compared to a Revocable Trust, but it cannot be modified, changed or terminated without the permission or consent of the trustee and the beneficiaries. The Grantor will give up direct control of all assets placed into the Irrevocable Trust. 

Benefits of an Irrevocable Trust:

• Grantor can retain all income produced by the trust
  
• Protection of assets to allow qualification for government benefits (additional rules apply for some programs)
  
• If structured as a Grantor-type trust, all appreciated assets in trust can still receive a step-up in basis at the death of the Grantor
  
• Ability to leave money to children or charities and still control how the money is used, as specified in the written document

State Bank of Graymont, as Trustee, can provide administration services for your Irrevocable Trust without the possibility of an emotional family conflict arising, which is more likely to happen when a family member is named as Trustee.

Some additional services include:

• Charitable Trusts
  
• Irrevocable Life Insurance Trusts
  

State Bank of Graymont has Full Trust Powers. For more information, please contact our Trust Officers, Matt Hunter in Pontiac and Ron Minnaert in Graymont, or our Assistant Trust Officers, Ashley Ralph in Pontiac and Paul Russow in Graymont.

NOT-FDIC-INSURED
NO BANK GUARANTEE
MAY GO DOWN IN VALUE
NOT A DEPOSIT
NOT INSURED BY ANY GOVERNMENT AGENCY