Planning your Legacy & Estate

Take advantage of our years of experience in estate administration to preserve your legacy. Start planning early so that when the time comes, you know your estate is handled according to your wishes.

Wills

A will, the cornerstone of planning your legacy and estate, allows you to give what you want, to whom you want, when you want, upon your passing.

Why you need a will:

• • • Name a guardian for minor children or the court system will appoint one.
    • Determine who receives your earned assets whether it is a family member, friend, or a favorite charity.
    • A beneficiary is not ready to receive a lump sum inheritance. It is important that this money is protected on their behalf.
    • You want to name the individual, or individuals, who will settle your estate.

Did you know you can name 1st Summit Bank as your executor or trustee? Naming the bank as executor gives the family the emotional healing time they need, without being overwhelmed by settling the estate. When family dynamics exist, the bank helps to maintain family harmony.

Power of Attorney

Take control of your finances in the case of unexpected circumstances. A Durable Power of Attorney (DPOA) protects your property in the event you become physically unable or mentally incompetent to handle your financial and medical matters. Authorize someone else to act on your behalf, so he or she can do things like pay every day expenses, collect benefits, watch over your investments, and file taxes.

Appoint a DPOA to avoid an expensive and time-consuming situation in the case you become incapacitated. Protect your property and financial affairs by having a person waiting in the wings if you need assistance.

Important Note:  Name the bank as your Power of Attorney. This a smart, secure decision to ensure your financial affairs are handled in a consistent manner and in line with your wishes and beliefs. You will benefit from the highest level of accountability and professionalism.

Revocable Trust

A Revocable Trust is a flexible plan created by an individual, or grantor, that can be changed over time. The grantor maintains control of the assets while healthy and living. It provides a seamless transition if the grantor becomes incapacitated. In that case, the successor trustee is able to step in and assume all financial duties.

The revocable trust is established and should be funded during one’s lifetime. It is extremely important to re-title one’s non-qualified assets into the name of the revocable trust. If this is not done, the trust loses some of its features.

A revocable trust may offer some privacy, and potentially reduce estate settlement costs. It does not minimize inheritance, income, gift, or estate taxes.

The bank steps in if the grantor becomes incapacitated by being named the successor trustee. When acting as a trustee, the bank follows strict fiduciary standards and must act in the best interest of the grantor and the beneficiaries.

Irrevocable Trust

An irrevocable trust allows the grantor to direct who inherits what, when, and how much. It may be funded while you are living or it can be created after you pass away when its written in the will or revocable trust as a testamentary trust.

An irrevocable trust cannot be amended or modified. Once a grantor places assets in an irrevocable trust, it is a gift to the trust and the grantor cannot revoke it. Control of those assets is removed, but you gain security knowing your wishes will be carried out.

There are numerous instances where a irrevocable trust could be a benefit: it gives the grantor the ability to make planned or continuing charitable donations; it’s a way to reduce the potential out of pocket expenses for an extended long term care event; it can lower the federal estate tax; it may provide for the surviving spouse, if you are in a second marriage, and it identifies who receives the property after the surviving spouse passes away.

This is an ideal choice for beneficiaries who are minor children or if the beneficiaries have difficulty handling money or have disabilities or substance abuse problems.

By naming the bank as trustee, proper administration of the trust is carried out in accordance with the grantor’s wishes and follows the complex laws to ensure one’s trust remains compliant.

Special Needs Trust

Enhance the quality of life of a person with a disability by maximizing resources available to them. Without the proper planning, valuable benefits could be lost when they are needed the most. This trust helps preserve eligibility for Supplementary Security Income and Medicaid.

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