Personal Living Trust is a trust arrangement wherein the client (or trustor) conveys property or funds to be managed by China Bank – Trust Group (as trustee), for the benefit of the trustor and his beneficiary/ies, or his beneficiary/ies only. This is an estate planning tool that becomes operational during the lifetime of the trustor and can help one to distribute his assets to his beneficiary/ies and loved ones in a timely and orderly manner.
The trustor can choose how to establish his Personal Living Trust Account:
The client, during his lifetime, may, at anytime, change the terms and conditions of the trust as well as the designation of the beneficiaries, provided these amendments are relayed in writing to the trustee.
Under an irrevocable trust, the client pays donor’s taxes in order to effectively transfer his assets to his chosen beneficiaries thereby removing the same from his estate. By doing so, he effectively reduces the size of his taxable estate resulting, in turn, to savings in estate taxes. However, once he has set up an irrevocable trust, he can no longer change any of the terms and conditions of the trust nor his beneficiaries.
Under a testamentary trust, the client appoints China Bank – Trust Group as the executor or administrator of his will. We will consolidate all his assets and obligations, manage and administer the affairs of his estate, and finally, distribute his assets in accordance with the terms and provisions of his will.
Life insurance provides one with an instant estate. In light of the substantial amounts involved, the policy owner may wish to consider opening an Irrevocable Life Insurance Trust (ILIT) to ensure that the proceeds from his life insurance will be professionally managed and given to the designated irrevocable beneficiary/ies to be used for the purposes intended by the insured.
Under this type of arrangement, the client endorses his life insurance policy/ies to China Bank - Trust Group for us to collect, on behalf of the designated irrevocable benefiairy/ies, the life insurance proceeds upon his demise. We will also ensure faithful compliance with the client’s instructions as to where we may invest the insurance proceeds as well as how, when and to whom the proceeds shall be given. Furthermore, being irrevocable in nature, the client will be able to save on estate taxes as the proceeds from the life insurance policy/ies are exempted from the payment of such tax.
Instead of buying a pre-need educational plan, one may consider setting aside a certain amount and build it up over time through regular contributions to accumulate enough funds to take care of his children’s education. The client may stipulate the terms of disposition such as amount of allowance, type of school, and the like. China Bank – Trust Group will design a portfolio and invest these funds to maximize returns.
For more details, please call Trust Group - Business Development and Portfolio Management Division at (632) 885-5878, 885-5867, 885-5862, 885-5858 or visit your nearest China Bank Branch