| Q: |
What is a trust? |
| A: |
A trust is a contractual relationship between an individual, a trustee and a beneficiary for the trustee to hold legal title to property, formerly owned by the individual, for the benefit of the beneficiary. |
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| Q: |
What are the different types of trusts? |
| A: |
The two basic kinds of trusts are inter vivos trusts, those created by an individual during his life, and testamentary trusts, those that are contained in a will and funded after an individual’s death. Inter vivos trusts can be either revocable or irrevocable. |
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| Q: |
What is a trust company? |
| A: |
A trust company is a business entity that is authorized by a state or the federal government to act as a trustee and to provide trust related services. |
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| Q: |
Who can serve as a trustee? |
| A: |
An individual is not required to have special qualifications in order to be a trustee. However, a business is not permitted to call itself a trust company unless it has demonstrated that its employees understand the special nature of the trust relationship and will perform their duties in a manner that reflects the company's commitment to its fiduciary obligations. |
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| Q: |
Why choose an institution rather than an individual to serve as my trustee? |
| A: |
A trust company is an institution specifically designed to act as trustee. When you name a trust company to serve as your trustee, you can be confident that the trustee will ensure compliance with the terms of the trust, while adhering to the highest standards of conduct required by law. While a family member or friend can serve as trustee, many people do not know someone who has the knowledge and experience to carefully invest trust assets, make impartial decisions, and serve in this capacity for as long as the trust will be in existence. Others simply do not want to burden a family member with the ongoing responsibility of serving as trustee. |
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| Q: |
How are trust companies regulated? |
| A: |
A trust company is required to maintain records of everything it does with respect to trust administration and trust property. These records are regularly inspected by state or federal government officials. The regulator must be satisfied that the trust company is fulfilling its fiduciary duties and has the power to compel the trust company to act properly through a variety of sanctions. |
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| Q: |
Can SVA Trust Company draft estate plan documents? |
| A: |
SVA Trust Company cannot draft legal documents. However, we can review current documents and make suggestion that might be appropriate after discussing your wishes and desires and your family situation. Documents need to be drafted by an attorney experienced in estate planning. |
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| Q: |
Can SVA Trust Company refer me to an attorney who practices estate planning? |
| A: |
Yes. We can provide names of attorneys and make suggestions based on our experience and your needs. |
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| Q: |
What is the connection between SVA Trust Company and SVA Certified Public Accountants, S.C.? |
| A: |
SVA Trust Company is an affiliate of SVA Certified Public Accountants, S.C., a certified public accounting firm. Several of the firm’s principals had been asked to serve as trustees of their clients’ trusts set up in their estate plans. SVA Trust Company, LLC was created in 2008 to provide continuity and quality of trust-related services, regardless of the availability of an individual. |
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