IRREVOCABLE TRUST ADMINISTRATION
Irrevocable trusts are a powerful tool that can help in the protection and preservation of a family’s legacy.. At Independent Trust Company, we have years of experience dealing with irrevocable family trusts — you can count on our expertise and knowledge to manage your trust according to your wishes. Contact us to see how our trust administration services can help your family members achieve their personal and financial goals.
IRREVOCABLE TRUST TYPES
A person creates an irrevocable trust for a lot of different reasons. Many would say it is to limit taxable consequences, protect assets from creditors and limit changes.
Only under certain circumstances can irrevocable trusts be changed, say by a court order or by agreement of all of the beneficiaries, which can be impossible if some are minors. While there are several subsets of irrevocable trusts, such as an irrevocable life insurance trust or charitable remainder trusts, there are only two main irrevocable trust types:
- Living trusts, which are in effect during the grantor’s life
- Testamentary trusts, which take effect upon the grantor’s death
IRREVOCABLE FAMILY TRUST ADMINISTRATION THAT STANDS THE TEST OF TIME
A family’s irrevocable trust is more than just a legal document. It not only protects and transfers assets, but it also embodies the values that first created that wealth. An irrevocable family trust can benefit your family members for generations to come. As a long-time trust administrator, Independent Trust Company provides crucial services to both families and their advisors. We understand your concerns and give your trust the attention that your values demand. Our expert staff has the experience and the compassion to faithfully administer your irrevocable family trust.
If you’re worried about the administration capabilities of a too-large-to-fail bank or a family friend or relative, Independent Trust Company is an alternative you can rely on. The time we take to understand your family and its values and our extensive trust administration expertise are an unbeatable combination.
THE BENEFITS OF AN IRREVOCABLE TRUST
Because of its finality, an irrevocable trust offers several critical advantages that can benefit your family. You must understand the benefits of an irrevocable trust to ensure you achieve your wishes.
Whether you select an irrevocable living trust or a testamentary trust, you need to be clear on how the advantages of an irrevocable trust can help you meet your goals. There are two main benefits of an irrevocable trust. It can:
MINIMIZE ESTATE TAXES
The assets in your irrevocable trust are not considered part of your estate for federal estate tax purposes. This can ease the tax burden placed on your beneficiaries after your death.
PROVIDE CREDITOR PROTECTION
Because the assets in an irrevocable trust aren’t within your control, they’re usually safe from creditors or lawsuits. This benefit is essential for people who often face lawsuits, such as doctors, lawyers, real estate developers or architects.
IRREVOCABLE TRUST TRUSTEE RESPONSIBILITIES
Irrevocable trusts are complex legal documents — and require a significant amount of time and effort on the part of an irrevocable trust trustee. The responsibilities are often more than a family friend or relative can bear, no matter how dependable they are. You need a partner you can rely on to ensure your goals and wishes are properly executed. Some irrevocable trust trustee responsibilities include:
These range from properly titling all trust assets to researching claims made against the trust and opposing improper claims in court. An irrevocable trust trustee also must ensure compliance with all legal statutes.
The trustee of an irrevocable trust must be able to maintain accurate principal and income accounting for all trust assets, pay bills authorized by the trust document and provide records for regular audits by independent third parties.
INVESTMENT AND CUSTODY OBLIGATIONS
A trustee’s duties include developing an investment objective in accordance with the trust document’s instructions and delegating day-to-day investment management tasks to approved financial advisors.
RESPONSIBILITIES TO THE BENEFICIARIES
An irrevocable trust trustee needs to maintain regular contact to assure the beneficiaries’ understanding of their rights under the trust document and provide income distribution following the document’s instructions.
DEPEND ON INDEPENDENT TRUST COMPANY FOR YOUR IRREVOCABLE TRUST ADMINISTRATION
You can rely on Independent Trust Company to administer your irrevocable trust according to your values and wishes. We have the knowledge, principles and expertise you expect from a dependable, experienced trust administrator. Contact us today to put your mind at ease.