Old Point Trust & Financial Services - Wealth Management & Trust

A Trustee/Fiduciary's Responsibilities and/or Functions

Be loyal to the trust and proactively carry out the provisions of the trust document in a fair and impartial manner.

Exercise prudent judgement in the management of the trust assets

Perform the day-to-day administration of the trust

Be aware of current fiduciary income tax, estate tax, gift tax, generation skipping transfer tax and their impact on the trust & beneficiaries

Understand tax implications with respect to managing the investment portfolio

Upon termination of a trust, determine proper expenses and taxes to be paid, and distribute the trust in accordance with its terms.

Types of Trusts & Their Goals

Revocable Living Trust (RLT)	Created during one's life, an RLT is flexible in that the grantor (creator) can amend the trust to address changing family and tax circumstances. The RLT provides for protection of assets during periods of disability, continuity of wealth management for future beneficiaries, and, if properly funded, reduced probate costs and a high level of privacy. In proper circumstances, a revocable trust can provide estate tax savings in the transfer of wealth.

Testamentary Trust	A trust that is created under the terms of a person's Will and become active only at the death of that individual. Depending upon the value of one's estate at their time of death, properly structured testamentary trusts may result in substantial estate tax savings for a family.

Insurance Trust	A trust whose assets consist of life insurance and/or the proceeds of life insurance. The trust should own and can be the beneficiary of the life insurance policy. Once funded, it operates under the terms of the trust agreement.

Personal Trust