Personal Trust ServicesDate posted: 6/18/15 06:15:00 AM
There are numerous reasons why a well-to-do individual might be interested in starting a trust. Trusts can provide for family members who are unable, too young or unschooled in handling their own finances and can also can manage personal assets for those who can't handle their own finances, according to USA.gov.
Trusts are also a tempting option for those looking to pass down wealth to their heirs, because unlike the public terms of a will, a trust is kept private.
But what exactly is a trust?
A trust is created by an individual or persons and is primarily set up by wealthy or middle-class beneficiaries. Personal trusts are legal entities that grant authority to buy, sell or manage property for the wellbeing of the beneficiaries.
"Trusts are a tempting option for those looking to pass down wealth."
For those interested in starting a trust, UMB offers a Private Wealth Management group with a full-service investment advisory. Clients of UMB can find better financial footing with a full range of trust management and custody services. These include individual retirement accounts, specialized asset management, financial planning and investment management.
Who should be interested in a trust?
Trusts don't have to be limited to the nation's wealthiest residents. Mike Janko, executive director of the National Association of Financial and Estate Planning, told CNN Money a trust can also be a useful tool for families who have at least $100,000 of net worth.
That's because a trust can reduce estate and gift taxes, protecting assets from creditors and lawsuits and giving proprietors the added benefit of knowing how their wealth will be distributed once they pass away. And a trust allows distribution of wealth to heirs without the lingering cost of a probate court, which can take 5 to 7 percent of an estate, according to CNN.
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