A trust account is created by a grantor and provides a trustee with an easy method of managing and disbursing property, or assets to beneficiaries. These accounts can also provide estate and tax benefits. We recommend that you consult an attorney if you have additional questions about which might benefit you best.
To open a deposit account owned by a trust, the trustee will need to provide appropriate documentation and the tax identification number for the trust. When opening your account, you have the option to receive an LGFCU Visa® Check Card or ATM/Member Access Card.
What is an Irrevocable Trust Account?
An irrevocable trust cannot be cancelled or changed.
- The grantor names at least one trustee to manage the assets in the trust.
- The grantor also names at least one beneficiary to receive assets from the trust.
- The trustee is responsible for managing and disbursing trust assets according to the instructions in the document.
Three situations that can prompt the formation of an irrevocable trust:
- A revocable living trust becomes irrevocable upon the death of the grantor(s).
- A trust is established and funded during the grantor’s life and designated as irrevocable.
- An irrevocable trust is created upon the grantor’s death and funded with specific assets from the grantor’s estate. This type of trust is known as a testamentary trust.
What is a Revocable Living Trust Account?
A revocable living trust allows the person creating the trust to modify or cancel it, giving the grantor flexibility.
- A trustee controls the assets or funds in the account.
- Assets held in a revocable living trust are not subject to probate.
Your resources: Deposit Services Brochure