“What is a Revocable Living Trust and why should I have one?”
A Revocable Living Trust document can serve as a substitute for a last will and testament to distribute property you have placed in trust when you die. Because property distributed through a trust does not need to go through probate, your trust property may be distributed more quickly and privately. But probate avoidance isn’t the only feature that people find attractive. The legal arrangement created by your trust has the added flexibility authorizing your Trustee to manage investments, pay bills, sell property, and generally take care of financial matters should the need arise. Although we encourage consulting your attorney when making estate planning arrangements, our own custom trust agreement may be the only thing you need to establish your trust.
A widow or widower inexperienced in investment matters can be easy pickings for unscrupulous sales people. There is an easy answer to this dilemma. A Revocable Living Trust with Home Federal Bank has many advantages to offer and one of them is to provide professional investment management throughout the lives of both husband and wife. This service can relieve an inexperienced spouse of the burden and risk of trying to make investment decisions at a time when they are most vulnerable. If you wish, your Trustee can also take care of bill payment, tax preparation, and other financial responsibilities so that your financial plan can be carried on professionally, competently, and without interruption. And if you wish to serve as your own Trustee until we are needed, that’s fine with us.
“I’m getting older now. I don’t know what’s the right thing to do with my investments and it’s getting harder and harder to keep up with things like bill paying and medical insurance claims.”
The Revocable Living Trust may provide the answers you are looking for. This arrangement not only gives your Trustee the responsibility to manage investments for you, but also authorizes your Trustee to pay bills and take care of other financial matters. You decide when the time is right for these added services. Older clients frequently title their homes or farms into their trust to facilitate a sale of property if and when the time arrives that a sale is appropriate. This trust not only provides for lifetime services, but also provides for distribution of property following death without the necessity of probate proceedings. We encourage consulting your attorney when making estate planning arrangements. However, Home Federal Bank has created a standard trust document that we make available without charge, which is sufficient for many of our clients.
“Some of my beneficiaries may be easily influenced or otherwise unable to properly manage money. Is there a way to protect their inheritance?”
Yes, with the assistance of an attorney, you can create a protective trust either as a part of your last will and testament or by using a separate document. Whatever challenges your beneficiaries face, be it a mental or physical disability, an addiction, or careless spending tendencies, when you create the trust, you can spell out how the trust funds are to be managed and used for their benefit. This type of arrangement not only assures that funds will be invested and distributed according to your wishes, but it will also protect the inheritance from “gold diggers” or the wasteful tendencies of the beneficiary. These arrangements typically become irrevocable upon funding and must be considered carefully. We can help you prepare for your visit with your attorney by discussing our policies and procedures for administering this type of trust and our fees for serving as Trustee.
“We aren’t ready to leave the family farm yet but we just can’t manage it any more. Can you help with that?”
When you hire us, we become your “hired man” to help you maximize your income, and we’ll see to it that your land is well taken care of. We will continue to work with your valued long-time tenant or family member, or if you prefer, we will seek out a new tenant that will take care of the land as you would. Our comprehensive services include coordinating complex government programs, negotiating leases, collecting income, paying taxes and insurance, and arranging for maintenance as needed. Your land is a valuable asset, producing a steady flow of income to you year after year, while increasing in value over time. Why sell and realize hefty capital gains tax? Especially when you can continue to own it until you pass away, and bypass the tax liability. Our management services make it possible.
Equal Housing Lender.