Irrevocable Trust and Revocable Living Trust Accounts

LGFCU offers both Irrevocable Trust and Revocable Living Trust deposit accounts. These accounts give legal instructions regarding how property/assets will pass to beneficiaries.

To open a deposit account owned by a trust, the trustee will need to provide appropriate documentation and the tax identification number for the trust.

IRREVOCABLE TRUST ACCOUNT

What is an Irrevocable Trust?
An irrevocable trust cannot be cancelled or changed by the person creating it, formally known as the grantor.

• A trust is established by executing a trust agreement and funding the trust with specific assets.
• The grantor names at least one trustee to manage the assets in the trust.
• The grantor also names at least one beneficiary to receive assets from the trust.
• The trustee is responsible for managing and disbursing trust property according to the instructions in the document.

Three situations that can prompt the formation of an irrevocable trust

• A revocable living trust becomes irrevocable upon the death of the grantor(s).
• A trust is established and funded during the grantor’s life and designated as irrevocable.
• An irrevocable trust is created upon the grantor’s death and funded with specific assets from the gra’s estate. This type of trust is known as a testamentary trust.

REVOCABLE LIVING TRUST ACCOUNT

What is a Revocable Living Trust? 
A revocable living trust allows the person creating the trust to modify or cancel it giving the grantor flexibility and the possiblity of earning income.

• A trustee controls the assets or funds in the account.
• Assets are not a part of the grantor’s estate and are not subject to probate.

BENEFITS OF DEPOSIT TRUST ACCOUNTS
One benefit of deposit trust accounts is to provide the trustee with an easy method of managing and disbursing the trusts' property. There are also numerous estate and tax benefits you can obtain from having either an LGFCU Revocable Living Trust or an Irrevocable Trust account. We recommend that you consult an attorney if you have additional questions about how either might benefit you best.

Ensure your assets are distributed the way you want!

• Contact the Call Center at 888.732.8562
• Visit your local branch