(StatePoint) As the economy stabilizes, you may be thinking about putting more of your money away for the future. But no matter how much money you have, as your wealth grows, it becomes more important to think about what will happen to your assets after you’re gone.
Regardless of the size of your assets, estate planning is important. Establishing a trust ensures your intentions are granted and simplifies the estate settlement process for your beneficiaries.
Experts say that accounts for trusts can be a useful tool in the process.
“Many people often overlook the importance of incorporating their bank accounts into their estate planning strategy,” says Diane Morais, a deposits and business integration executive with Ally Bank.
If you have questions about whether or not a trust is right for you, you may want to consult an attorney or financial advisor. An attorney can also help you obtain a legal trust agreement and name the trustee, who is the person who will manage the trust once it has been established.
If you’re considering establishing an account for trust, consider these benefits:
• A trust helps ensure your assets are protected and that your beneficiaries are cared for in the future.
• It can potentially reduce estate tax liability.
• It may help to avoid probate, which is the sometimes long and complicated process of settling an estate, saving time and court fees.
• Accounts for trusts are insured up to at least $250,000 per depositor at Member FDIC banks.
When evaluating bank accounts for trusts, consumers should look for accounts that offer competitive interest rates, stable growth and a straightforward approach to banking -- such as no monthly maintenance fees, no minimum deposit and daily compound interest.
For example, Ally Bank has an array of products well suited for trust accounts, such as high yield CDs, no penalty CDs, raise your rate CDs, money market accounts, online savings and checking accounts with 24/7 live customer service. You can learn more about the process by using a new resource guide on establishing accounts for trusts at www.AllyBank.com.
It’s not always pleasant to think about the very distant future, but estate planning can help your family when you’re no longer able to ensure their security. Take steps now to protect your nest egg for your loved ones and beneficiaries.
Photo Credit: (c) Yuri Arcurs - ThinkStock