Whether you have recently been named the executor of an estate and need to know the basics, or are wondering why many families choose trust services for wealth management, our library of resources is a great place to start:
Trusts are not just for the rich and famous any more. Modern technology has made the delivery of personal trust services and corporate trustee services, practical and affordable to more and more families.
The creator of a trust is customarily called the grantor. The grantor works with an attorney to prepare the trust agreement—an enforceable legal document, which will give the trustee instructions about the management of the trust and the distribution of income and principal. Every trust has beneficiaries, for whose protection the trust has been created.
Who should be the trustee? It could be an individual, or a corporate fiduciary, such as Arvest.
To understand fully what you should expect from your trustee, you need to fully understand the wide range of complex duties your trustee will undertake, including:
- Taking initial control of the trust assets—reviewing the instructions in the trust agreement and meeting with the trust’s creator or the beneficiaries to discuss their needs
- Assuming the administrative duties—transferring assets to the trust and inventorying them, setting up the recordkeeping tools, obtaining adequate insurance on insurable assets
- Supervising investments scrupulously and continuously—developing an investment management strategy framed by the needs of both current and future beneficiaries
- Making payments to the trust beneficiaries—as dictated by the trust agreement, exercising discretion in making distributions as authorized by the agreement
- Filing all the necessary tax returns—keeping a record of taxable income and the cost basis of all assets and furnishing data for the beneficiaries’ tax returns annually
- Distributing the trust assets—calculating the proper share for the beneficiaries and arranging for the transfer of the trust’s assets to them
Being a trustee is more difficult than it may initially appear—it can be challenging, emotional, even overwhelming. It is not an “honorary position” to be bestowed on a friend or family member—it entails duties and responsibilities, which can be time consuming especially for a first-time trustee.
The better choice of a trustee for most families is to entrust the family fortune to a corporate, professional trustee such as our team at Arvest Trust & Wealth Management. We have the experience, expertise, staff, systems, and essential infrastructure for trust management. We provide guidance, and routine and continuous oversight. Your team is comprised of Trust & Wealth professionals who are always available to answer your questions and advise on changing circumstances. We take an objective, unemotional approach to investment management.
Implementing a trust-based financial plan is a serious undertaking, and there are both costs and benefits, which should be carefully weighed. Could you and your family benefit from this approach? We will be happy to share our knowledge and help answer your questions. You may arrange to meet with an experienced trust and estate planning professional at your local Arvest Bank. Take purposeful action today to protect your family’s financial future tomorrow. Click here to arrange for an appointment at your convenience.
This content has been prepared by The Merrill Anderson Company and is intended as a general guideline.
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