Expert: Andre Nacaxe, CTFA, Senior VP & Senior Trust Officer

What is a Trust, and should I have one?

A trust is a legal agreement where a trustee, like United Southern Bank, takes care of and manages assets for someone (the grantor) to benefit another person (the beneficiary). Trusts can be set up for different reasons, depending on someone’s estate planning goals. They can be used to give money to charities, avoid the probate process, control how assets are distributed, help with tax planning, protect beneficiaries, and keep certain details private, among other things.

It is a common misconception that trusts are just for the wealthy and individuals with high net worth. While trusts can be especially attractive for families intending to minimize estate and gift taxes, the primary purpose of trusts today is to avoid probate, which is the legal process used to determine a will’s validity, identify beneficiaries, and then distribute the deceased’s assets and property. Probate can be costly and take some time to administrate.  A trust ensures that, on your death, your assets transfer directly to your beneficiaries without having to participate in the probate process.

Trusts can also assist individuals with special needs who may qualify for government assistance. They are also a great way to support charitable endeavors and community efforts through community foundations, grants, and scholarships.

To better understand if a trust is right for you, we recommend consulting with a trust advisor and an attorney.

Since its foundation in 1937, United Southern Bank has been on a mission to be a community bank that cares about its customers, employees, shareholders, and communities. With over 75 years of combined experience, our trust officers understand the level of responsibility and commitment that the role of trustee and investment management demands. We offer wealth management services, asset management, IRAs, and trust and estate administration.

In addition, in 2023, United Southern Bank created a community foundation called the Sunshine Community Trust. The foundation was established to support local community and charitable organizations through designated funds. Supporting a community trust allows you to contribute to the greater good while also benefiting from tax incentives and professional guidance.

Community trusts, like the Sunshine Community Trust, often focus on supporting local projects and initiatives, helping to strengthen a region’s social, cultural, and economic fabric. Community trusts are professionally managed, ensuring that donations are invested wisely and distributed according to the donor’s wishes. This means you don’t have to worry about administrative burdens or overseeing the disbursement of funds.

For more information on establishing a trust or contributing to the Sunshine Community Trust, contact the United Southern Bank Trust Department!