September 23, 2016

Investments: Matters of Trust

A trust is simply a set of instructions established for the management of your assets and property. A trust can provide a measure of comfort knowing that you have a plan in place to help provide for the safe and accountable management of family assets and to direct their use in accordance with your wishes, goals and objectives.

  • How you want your assets managed, and eventually distributed 
  • Who you want to benefit from your assets, now and in the future
  • Who you want to be responsible for carrying out those instructions

An attorney with proper estate planning expertise should be the one to actually create your trust. Your Lake Michigan Investment Services financial advisor can help you manage funds within the trust.

Two Basic Trust Types:
Revocable or living trusts are the foundation of many clients estate plans.
Irrevocable trusts are used for many specific transfer and tax benefits and to handle assets after you have passed away.

What Can a Trust Do for You?
A trust is used to help ensure the proper management of your assets throughout the different stages of your life:

  • During your active lifetime, placing assets in a trust allows you freedom to continue    managing your assets or to devote time to other priorities. A trust created and funded during your life is generally called a “living” or “revocable” trust.
  • In the event you are incapacitated, a trust can help ensure that your needs are met and that your finances are kept in good order for your benefit.
  • Upon your death, a trust becomes “irrevocable”, and your assets are managed and distributed by your trustee, in accordance with your instructions throughout the trust’s existence.
  • An estate planning attorney may recommend creating an irrevocable trust during your lifetime, in addition to a revocable trust. This may provide creditor protection, controlled giving to family members or estate tax minimization.

The establishment of an appropriate trust is a complex process best undertaken by experienced legal and financial professionals. Contact Lake Michigan Investment Services for a free, no-obligation review of your financial situation.

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