Whether you're seeking to manage your own assets, control how your assets are distributed after your death, or looking for a way to safeguard personal and professional assets from liability, trusts can help you accomplish your wealth planning goals. Their power is in their versatility - many types of trusts exist, each designed for a specific purpose. Although trust law is complex, we can help you learn the basics, establishing you as a valuable member of your own PNC Wealth Management team.
What is a Trust?
A trust is a legal entity that holds assets for the benefit of another. Basically, it's like a container that holds money or property for somebody else. There are three parties in a trust arrangement:
You create a trust by executing a legal document called a trust agreement. The trust agreement names the beneficiary and trustee, and contains instructions about what benefits the beneficiary will receive, what the trustee's duties are, and when the trust will end, among other things.
Funding a Trust
You can put almost any kind of asset in a trust, including cash, stocks, bonds, insurance policies, real estate, and tangible assets. The assets you choose to put in a trust will depend largely on your goals. For example, if you want the trust to generate income, you should deposit or invest in income-producing assets, such as bonds, in your trust. Or, if you want your trust to create a fund that can be used to pay estate taxes or provide for your family at your death, you might fund the trust with a life insurance policy.
For More Information
To learn more about PNC Trusts, view the topics in the More Information box above or contact us at 888-762-6226 7:00 a.m. to 10:00 p.m., ET, Monday through Friday and 8:00 a.m. to 5:00 p.m., ET, Saturday and Sunday to speak with a Wealth Management representative.