Trust accounts are a great way to protect yourself from legal situations when either handling other people’s money or having people manage your finances. They are a secure way to have your money work for you with investments and other ways to save and make money. It can even ensure your money gets into the right hands in certain situations. Learn more about personal and business trust accounts below.
Personal Trust Accounts
Personal trust accounts hold people’s personal assets. These assets are usually deposited on behalf of grantors and living trusts. They are offered by finance advisors, who can help plan investments.
After opening a trust account, people have many options to invest the money. They can choose mutual funds, bonds and individual stocks. It’s a great way to make money from money.
There’s usually a minimum investment for trust accounts. This depends on the institution and what you can plan on doing with the funds. There are also service fees for whatever the financial advisor does with the funds in the trust account.
Business Trust Account
Businesses that manage their clients’ finances should consider a trust account. There are two types of trust accounts to consider:
Formal Trust Account: This type of trust comes out of an agreement. Most people have this as part of their will, but it can be part of other agreements. The account is established in the name of a person who will control it according to the statutes of the agreement. For example, if it’s a will, the trust will be governed by the person or entity stated on the will.
Business In-Trust Account: This type of account is established in the name of the business that is holding the money for the client. This gives the business authority in using the funds, but the client still has control of them.
Trusteed Deposit Service: This trust fund can be split up with many beneficiaries. Each beneficiary will have a separate sub account. People choose this because it’s easier to keep records when the money is used in many ways.
Taxes and Trust Accounts
Trust accounts are taxable. This means you will have to report earnings and pay taxes on them each year.
Personal and Business Trust Account Services in Southern Utah
Personal and business trust account services in Southern Utah are available. All you have to do is give us a call for more information on getting one set up. We would love to help you manage your finances in the safest, best way possible.