Frequently Asked Questions
Investments through the Trust and Investment Services Department are not FDIC insured – may lose value – Not guaranteed by First Bank Richmond, NA.
What is a Trust?
A trust is an arrangement in which you transfer assets to a legal entity, the trust, created by a separate agreement. The trust will be administered by a trustee (a trust institution such as First Bank Richmond or an individual) for a beneficiary (yourself or another person).
What are the advantages of a Trust?
With a trust you will not only draw on our broad investment capabilities, but also arrange to have us perform any number of special services, now or in the future. These personalized services can even include providing full personal financial management in the event you suffer an incapacitating illness. Also, with a trust, you can name one or more beneficiaries to receive your assets at your death and avoid probate. Or, you can have your trust continue beyond your lifetime, serving as a source of continuing income and support for your spouse, a child or others whom you designate.
Is it difficult to set up a Trust?
No. You should start by discussing your financial and investment goals with us and with your attorney. Your attorney can prepare your trust agreement or you can use our form trust agreement document. You sign the trust agreement as creator of the trust, and we sign to indicate acceptance of the responsibilities that you give us as trustee. You deliver the money and/or the securities that you wish to place in the trust. It is that simple.
A trust of this type is often called a Living Trust to distinguish them from a Testamentary Trust (a trust established under the terms of a will). A Living Trust created for the purpose of personal asset management is also known as Revocable Trust. That is because the person who creates the trust reserves the right to cancel or revoke it during their lifetime.
Do I have to give up control if I set up a Trust?
No. You do not have to give up control when you create a Revocable Living Trust. You keep as much control as you want. Typically, the creator of a Living Trust stays in control by retaining the power to do one of the following:
- Take your business elsewhere by changing trustees
- Withdraw trust assets
- Change instructions to the trustee by amending the trust agreement
- Cancel the trust all together
How does the Trust avoid probate?
When someone dies, his or her will must be probated and proven valid. The process of settling an estate controlled by a will is referred to as “going through probate”. Because a Living Trust is a separate legal entity, assets that have been placed in the trust are not subject to probate when the creator of the trust dies. As a result, the directions contained in the trust agreement can be carried out without undue delays. Also, the terms of the Living Trust Agreement will remain private, unlike the terms of a person’s will which becomes public record once the will is probated.
Do I have enough money for a Trust?
Many people still mistakenly believe that trusts are only for the very wealthy. Here at First Bank Richmond, the majority of our customers do not classify themselves as wealthy, they do not have multi-million dollar trusts. Whether you just sold your business for a great deal of money, need to safeguard a retirement nest egg, or need assistance with your investments, you should consider our services.
Why should I pick First Bank Richmond as my trustee?
In addition to possessing financial strength and professional investment capabilities, we know how to take care of all trust and investment details. We offer flexible and responsive service.
Is a Trust expensive?
No. You will find that our annual charges as trustee will often be less than you were previously paying for investment advice or mutual fund services.
Do I need to have a Trust to use your investment services?
Many of our clients choose to use the trust arrangement because of the unique advantages it offers. However, you are not required to create a trust to use our investment services. If you prefer, you can sign an Investment Advisory Agreement with First Bank Richmond which allows us to act as your investment agent to manage your investment portfolio.
Can I make the investment decisions?
You may do so if you wish. However, most of our clients look to us for objective, unbiased portfolio advice and supervision because of the time or specialized knowledge required to do all of the necessary investment homework themselves. You have the option to delegate to us as much or as little investment responsibility as you want.
What kind of investment performance should I expect?
That depends on market conditions and your specific investment objectives. Historically, the average annual return from a balanced investment program of stocks and bonds is somewhere between 8 to 10 percent. However, performance is not measured solely in percentages. What is important is how well a trust investment program meets your goals without taking more risks than what you are comfortable with. At First Bank Richmond our goal is to provide reasonably consistent returns over time. We emphasize asset allocation, the selection of quality investments and constant vigilance.
How can I find out more about your Trust and Investment Services?
Our Trust and Investment staff will be glad to assemble further information for you, analyze your investment requirements and answer questions not covered here. Please e-mail us at email@example.com or call our Trust and Investment Services Department at 1-800-548-8138 ext. 209 or (765) 973-4209.
For more information on these products or to schedule an appointment, contact any of our trust and investment professionals.
Senior Vice President
Senior Trust Officer
31 North 9th Street
Richmond, IN 47374
(800) 548-8138, ext. 209
Trust and Investment Services
31 North 9th Street
Richmond, IN 47374
(800) 548-8138, ext. 208
Note: Please do not include any personal or account information when submitting an e-mail. E-mail messages are not encrypted. If you need to give personal or account information, please telephone us or stop by one of our convenient locations.