Why should anyone transfer control of assets to a trust institution?
First State Bank offers professional investment management and unlike even the most astute investor, the bank never takes a vacation or gets sick. By creating a trust to fit your unique needs, you benefit not only from the bank’s experience, but also from the tax advantages, security and legal protection that a trust can provide. The trustor doesn’t really “lose” control over the assets, since the trust is managed to achieve the specific purpose defined in the trust agreement. When the trust agreement is signed, the settlor decides exactly how much discretion to give the trustee in managing the assets. While some people impose very strict limitations, many persons allow the trustee to use broad discretion. Overly restrictive limits on the trustee’s investment powers don’t take into account changing economic conditions, and might prevent the trustee from capitalizing on potentially profitable shifts in investment markets. The trust customer is always protected by state trust law and fed
