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Establish or Transfer a Trust

Matching your needs with the right expertise.

Many people worry about their final affairs. They wonder if they need a Will or Trust. Some worry about taxes and other costs. Others are concerned about inter-family conflict.

The tax and legal environment surrounding establishing or transferring a trust can be confusing, and navigating the complex relationships in any family can be a harrowing experience. Let us help you work through this process. 

What we do

We act as trustee in all manner of irrevocable, revocable, testamentary, special needs, and life insurance trusts. We are also available to serve as co-trustee or successor trustee for those who wish to manage their assets until death of disability.

Throughout the process, we keep the focus on you – making sure your story and needs are heard.

Frequently Asked Questions

Not everyone has over decades of experience in the trust, financial and legal industry. We are here to answer your questions. 

We included some of our most frequently asked questions, but don't hesitate to contact us for any questions we may not answer below. 

What is a trust?

A “trust” is nothing more than a legal relationship in which one person holds property for the benefit of another. The person who holds the property is called the “trustee.” The person who benefits from the property is called the “beneficiary.” The trustee owes the beneficiary several important responsibilities. The trustee must be loyal, honest and fair with the beneficiary. The trustee must also act in the beneficiary’s best interest.

What are the different types of trusts?

Trusts created during life

Trusts created during life are called “Living Trusts.” Living Trusts usually take effect immediately. In general, Living Trusts are named after the creator of the trust, such as the “John A. Smith Revocable Trust,” or the “John A. Smith Irrevocable Trust.”

There are two types of living trusts:

Revocable trusts

  • Revocable trusts are trusts that can be changed or terminated.
  • Revocable trusts can be used to avoid probate. “Probate” is a court proceeding in which a judge determines the validity of a Will, and a personal representative collects the decedent’s assets, pays the bills, and distributes property to heirs.
  • Assets that are transferred to a revocable trust are usually not subject to probate at death; however, those assets are still subject to income tax, federal estate tax, and inheritance tax.

Irrevocable trusts

  • Irrevocable trusts cannot be changed after they are created. 
  • Irrevocable trusts are commonly used to provide income or support for heirs.
  • Assets that are transferred to an irrevocable trust may be subject to federal gift tax. The property is usually not subject to federal estate tax or state inheritance tax.

Trusts that take effect at death

Trusts that take effect at death are called “Testamentary Trusts.” A testamentary trust is a trust that is created in a Last Will and Testament.

  • Testamentary trusts do not take effect until the creator of the trust dies.
  • Many married couples draft a Will that establishes a trust for their children if both spouses pass-away simultaneously. The trust only takes effect if both spouses die, and no one is left to support their children.
  • These trusts serve several purposes. In most cases, testamentary trusts are used to provide professional money management for children.
Why do people transfer their trusts?

People transfer their trusts to our bank for several reasons.

  • Our staff is well-versed in the legal environment surrounding trusts, including the Uniform Trust Code, the Prudent Investor Rule, the federal income tax code, estate tax code, and inheritance tax code.
  • Our staff is knowledgeable about investment vehicles and has experience in professional money management.
  • Our staff is accessible. We offer the friendly customer service that is associated with small town rural banks. We will respond to your questions and concerns in a caring, respectful manner. 
  • We offer competitive rates.

If you would like more information on our trust services, please contact us at (402) 759-3114.

Why do people have trusts?
  • Many people form trusts to provide professional money management for multiple generations, or for the following type of heirs:
    • Children
    • Physically or mentally disabled heirs
    • Heirs who make poor financial decisions
    • Heirs who make impaired lifestyle choices
  • A trust can be used to provide estate tax savings.
  • Some people use a trust to free themselves or their heirs from the burdens of management. Rather than manage assets or force their heirs to manage assets, they allow a trustee to invest their money and oversee their property.
  • A trust can be used to avoid probate court. In most cases, assets held in trust are not subject to probate. Probate is a court proceeding in which a court determines the validity of a Will, and a personal representative is appointed who will inventory assets, pay debts and distribute assets to the heirs. Assets held in trust generally aren't subject to probate. Instead, the assets pass to heirs in a private, confidential setting.
  • A trust can provide uninterrupted management of assets after death. Rather than having assets tied up in a court proceeding, the assets will be put to their useful purpose.
  • Some people use a trust to help resolve a potential conflict among their heirs. After death, children and grandchildren will sometimes argue about the division of assets. Often, old grudges are resurrected, and families suffer permanent divisions. When you name the Heartland Trust Company as trustee, we will act as a neutral, objective third-party who will resolve these disputes, and keep the family together.
  • Many people form trusts to maintain a legacy, like preserving a family farm or business for the next generation.
  • Some form trusts for charitable purposes. These trusts provide scholarships for students, support churches, or give funds to worthy causes.

All of the information contained herein is for informational purposes only. The material is not intended to constitute legal, tax, investment, or financial advice and may not be used as such. Effort has been made to assure that material presented herein is accurate at time of preparation; however, this material is not intended to be a full and exhaustive explanation of the law in any area or all of the tax, investment, or financial options available. You should consult a lawyer or tax professional to insure that the same is accurate and appropriate for your unique situation. Pursuant to IRS Circular 230 you are informed that any tax information contained in this communication is not intended as tax advice and is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

Unmatched Customer Service

Heartland Trust Company prides itself in being the only community bank trust company with the combination of unmatched personal customer service, upfront and continued transparency and the expertise of financial and legal advisors.

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