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| | You'll find a variety of trust accounts available at Kern Schools Federal Credit Union. To design one to fit your needs, talk to a Financial Services Officer at any of our offices. | |
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| | Revocable (Living) or Inter Vivos Trust Accounts
Trusts are estate-planning tools used primarily to avoid the delays, costs, and publicity of the probate process. Members will generally work with a professional estate planner or an attorney to establish a formal living trust. Once the formal trust agreement has been created, members should transfer title of their assets to be held in trust.
Irrevocable Trust Accounts
Trusts may be revocable or irrevocable. Revocable trusts allow the Trustor(s) to change or revoke the trust at any time. With an irrevocable trust, the trustee owns the assets that are held in trust for the benefit of the beneficiary(ies); the Trustor(s) relinquishes ownership of the assets. Once created, an irrevocable trust is extremely difficult to be amended or terminate.
Totten Trust Accounts
A Totten trust is an account in the name of one or more parties as trustee for one or more beneficiaries. The relationship is established by KSFCU’s account agreement and only the funds on deposit are subject to the trust. The trustee may make deposits to or withdrawals from the account or even terminate the account.
Example: A member may wish to establish an account in trust for their grandson.
In this example, the grandparent (member) is both Trustor and trustee and the grandson is the beneficiary.
Court Ordered Accounts
Court Ordered Accounts or Court Blocked accounts are referred to as such because of the limitations set forth in the court orders establishing them. The provisions of blocked trusts vary and may, for instance, allow the trustee to make deposits without a court order while requiring a court order for any withdrawals.
Uniform Transfers to Minors (UTMA) Accounts
UTMA accounts are irrevocable custodial accounts held in trust for the benefit of a minor. These accounts are usually funded by gifts to a minor. Other sources of account funds may include transfers from estates, guardianships or persons indebted to the minor.
Only the custodian is authorized to transact, withdraw funds, or close the account. The minor is not allowed to transact on the account.
Minor Trust Accounts (Coogan Accounts)
If a child in California has income from certain entertainment-related work or sports, by law a blocked account for the child’s income must be established by the child’s parent or legal guardian. The child’s income must be deposited directly into the blocked account by the employer or agent. The parents or legal guardians act as trustee on the account for the minor’s benefit. The account must be established within 7 business days of the minor’s employment contract being signed.
Relief Fund Accounts
Relief fund accounts are established so that people can make donations for the benefit of other Credit Union members in our community who are experiencing a hardship of some sort.
Representative Payee Accounts
The Social Security Administration (SSA) may issue payments to a representative payee who is designated to act on the behalf of a beneficiary who is incapable of handling his or her own affairs because they are too young or are mentally or physically impaired. A Representative Payee account is established to receive these SSA payments.
Conservator/Guardian Accounts
These accounts are established after the court decides that a person (called the “conservatee” or “ward”) can’t take care of themselves or their finances. The court chooses another person or organization (called the “conservator” or “guardian”) to be in charge of the conservatee or wards care of finances, or both.
Estate Accounts
The Executor or Administrator of a deceased member’s estate may wish to establish a separate estate account for handling funds in probate. The estate should have its own tax ID number.
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