Types of Trust

The following is a brief description of the types of trust and a Glossary of Trust Terms that can be managed at FSB Trust and Investment Management Group:

Revocable Living Trust:	Provides for asset management by a profession trustee; sets distribution guidelines
Advantages:	Flexible, avoids probate cost; provides investment management
Irrevocable Living Trust:	Permanently transfers assets out of your estate, much like making a gift transfer
Advantages:	Shifts taxable income to those in lower tax brackets; protects assets from creditors
Testamentary Trust:	Establishes a trust in a will that takes effect upon one’s death.
Advantages:	Allows for long term supervision and impartial distribution of assets after one’s death
Charitable Remainder Trust:	Income from property goes to owner now, but property goes to charity in the future
Advantages:	Maintains stream of income for owner (or heirs), yet qualifies for current tax deduction
Charitable Lead Trust:	Income from property goes to charity now, but property reverts to owner in future
Advantages:	Helps charity sooner, qualifies for tax deduction, but keeps property in the family
Bypass or Generation- Skipping Trust:	Provides heirs with income now, but skip their estates at death to benefit younger heirs
Advantages:	Reduce estate and other taxes and probate expense by skipping intervening heirs
Credit Shelter Trust:	Designates specific assets to utilize Federal Estate Tax Credits
Advantages:	Maximizes the use of available estate tax credits while they remain available
Standby Trust:	A dormant arrangement that is activated by various contingencies
Advantages:	Provides for emergency supervision of assets under terms and with trustee that you select