What are trust and fiduciary services?
Without smart financial planning, many families find themselves facing complications when assets change hands after a death or other event. When you properly plan for the future, however, you’re able to protect both your assets and those of your loved ones. Trust and fiduciary services help put key safeguards in place so you can continue building on the progress you’ve already made.
Riverview Trust Company specializes in protecting your assets, helping you achieve your long-term financial goals, and preserving your legacy for future generations. Let’s explore how trust and fiduciary services work and whether they could be a valuable investment in your family’s future.
TRUST AND FIDUCIARY BASICS
When you stay in a hotel room, you might lock your valuables away in the safe to keep them secure. Like a safe, a trust provides a way to securely hold assets for the benefit of a designated beneficiary.
There are three main parties to a trust—the grantor, trustee, and beneficiary (or beneficiaries).
Grantor: The grantor, or trustor, is the person who owns the assets. This person establishes the guidelines governing the trust, decides who will manage it, designates the beneficiary of the assets, and determines when they will be distributed.
Trustee/fiduciary: A fiduciary is a person or organization, such as Riverview Trust Company, with a legal duty to act in someone else’s best interests. There are several types of fiduciaries, including attorneys, conservators, and financial advisors. In a trust, the trustee serves as the fiduciary.
Beneficiary: The third party is the named beneficiary, the person or people who will eventually receive the assets held in the trust. Beneficiaries can receive trust assets in one of three ways—all at once, gradually over time, or under the terms outlined by the grantor.
KEY FEATURES OF TRUSTS
A trust can help you manage, protect, and distribute your assets in a way that reflects your financial goals and estate planning wishes. While trusts and wills are both used in estate planning, they differ in several important ways.
Trusts vs. Wills
A will allows you to outline how you want your assets distributed after you pass away. However, many wills must go through probate, a legal process in which the court verifies the will, settles outstanding debts, and oversees the transfer of assets to your beneficiaries. Since probate is a matter of public record, the information contained in your will generally becomes public.
By contrast, a trust allows you to manage your assets during your lifetime and provide instructions for their distribution after your death. Unlike a will, a trust generally avoids probate, allowing it to remain a private document that is not subject to public disclosure. For those who value control and confidentiality, a trust may be an option worth exploring.
Revocable vs. Irrevocable Trust
Trusts typically fall into one of two main categories: revocable and irrevocable. With a revocable trust, the grantor maintains control of their assets during their lifetime and can change the trust or cancel it altogether if they choose. With an irrevocable trust, the terms are typically set and cannot be altered by the grantor or anyone else.
Tax Advantages
While trusts are created under state law, they are subject to federal income and estate and gift taxes. However, creating a trust can provide potential tax benefits in certain situations. Trusts are subject to different tax treatment depending on how they’re structured.
Irrevocable trusts may also offer additional safeguards. For instance, you may be able to shield your assets from lawsuits, creditors, and other claims. To find out what tax advantages and protections may be applicable to your personal situation, it’s wise to consult with a professional financial advisor.
BENEFITS OF TRUST AND FIDUCIARY SERVICES
Professional trust administration can provide valuable benefits, including the following:
Wealth Management Expertise
Professional trust administrators have a wealth of knowledge, offering specialized expertise and experienced guidance. A professional trust company can help navigate complex trust matters, recommend strategies aligned with your goals, and offer insights that may otherwise be overlooked.
Independent Oversight
When significant wealth is involved, emotions and tensions can sometimes run high. Choosing one person to oversee assets while excluding others may create conflict or strain family relationships.
By appointing a neutral, trusted third party, you can help reduce emotional complexities and ensure impartial guidance, helping to separate personal relationships from trust management decisions. Professional administrators are equipped to make decisions based on their fiduciary duties rather than family dynamics or personal feelings.
Long-Term Stability
When you appoint an individual trustee to manage your assets, changes in their health, availability, or your relationship with them may require updates to your trust. By choosing a professional administrator, you gain consistent, long-term financial stewardship that can help ensure your trust is managed seamlessly for generations to come.
Sound Governance
Trusts can involve complex requirements and ongoing responsibilities. For example, to remain effective, they must comply with evolving legal standards, and trustees must stay informed of changes to tax laws and regulations.
Trustees are also responsible for providing beneficiaries with annual reports outlining the trust’s assets, gains, losses, and expenses. By working with a professional administrator, you can ensure that your trust remains compliant, properly managed, and aligned with applicable tax laws.
Safeguarding your assets today can help preserve your family’s wealth for future generations and provide peace of mind that your financial affairs are in order. When you explore trust and fiduciary services with Riverview Trust Company, you can feel confident knowing your legacy is handled with great care and integrity. Combining deep knowledge with personal attention, we bring clarity to even the most complex financial situations.
Your financial future deserves a trusted partner. We’ll help you make informed decisions, protect your assets, and move toward a more empowered financial future—both for yourself and the generations that follow you. Speak with a member of our team to discuss your financial needs.