Trust Services Available.
Trusts are flexible tools that can help ensure your hard-earned success is preserved, protected, and transferred as you intend. A trust is traditionally used for minimizing estate taxes but can offer other benefits as part of a well-crafted plan. Some common trusts include:
- Revocable Trusts. Also known as a “living trust,” a revocable trust can help assets pass outside of probate while still allowing you to retain control of them. Revocable trusts are flexible and can be dissolved anytime should your circumstances or intentions change. You can name yourself trustee and retain control over the trust, its terms, and assets during your lifetime. You can also make provisions for a successor trustee to take over when the time comes. Although a revocable trust may help avoid probate, it is usually still subject to estate taxes.
- Irrevocable Trusts. Irrevocable trusts typically transfer your assets out of your estate and potentially out of the reach of estate taxes and probate, but they cannot be altered after they have been executed. An irrevocable trust is generally preferred over a revocable trust if your primary aim is to reduce the amount subject to estate taxes.
- Settlement Trusts. Settlement trusts are used in connection with personal injury settlements. They are usually formed during the life of the injured party and are typically irrevocable. Settlement trusts help prevent the beneficiary from squandering settlement proceeds, make sure proceeds are used for their intended purposes, and provide funds when needed.
One of the most important aspects of creating a trust is choosing a trustee to manage, protect, and distribute your trust assets according to your wishes. A trustee’s responsibilities include:
- Funding trusts
- Distributing funds to beneficiaries
- Providing regular accountings
- Managing investments
- Preparing trust tax forms
Clearly, your trustee has significant responsibility for the financial well-being of your current and future beneficiaries and should be comfortable monitoring the investment advisor, requesting distributions, and making potentially difficult decisions.
For these reasons, we’ve partnered with Comerica Bank & Trust*, one of the nation’s leading trust institutions, whose experience and objectivity keep decisions free of bias or considerations of family dynamics.
Let us walk you through the process.
What, then, is SELCO’s role? Our advisors act as a liaison between you and the trustee, guiding you through the process of establishing your trust services. We can also help balance distributions for beneficiaries and make sure assets are invested wisely. Our Trust Services team understands the complexities of trust administration and will work side by side with your lawyer and CPA to ensure all legal, tax, and administrative needs are efficiently managed. Most of all, we offer the reassurance that your and your heirs’ financial futures will be handled with professionalism, understanding, and care.
* Comerica Bank & Trust is not affiliated with SELCO Investment & Retirement Services, CUSO Financial Services, L.P. or any of its representatives.
Nondeposit investment products and services are offered through CUSO Financial Services, L.P. ("CFS"), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Nondeposit investment products offered through CFS are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. SELCO Community Credit Union has contracted with CFS to make nondeposit investment products and services available to credit union members.