What is a Trust?
A trust is when one party (known as the trustor) gives a second party (the trustee) the job of holding property or assets for a third party (the beneficiary).
It's a great way to make sure money is set aside for another individual – like a child or grandchild – or to give back to your community or another cause that's important to you. Plus, establishing a trust account or policy may help prevent funds from being tied up in court after your death.
Important Trust Account Information
- You must already have a trust established to open a trust account or policy.
- A trust account or policy can be registered in the name of a trust (living, family, charitable, or other).
- Trust accounts or policies are often set up to help meet financial needs for family members or for charitable reasons.
- If you set aside funds for a child or grandchild in a trust account or policy, that child will be able to access the funds based on the conditions in the trust document (for example, when he or she reaches a certain age).
Types of Trusts
- An irrevocable trust generally can't be modified or terminated without the permission of the beneficiary and/or judicial authorities. It may be useful for federal estate tax planning.
- A revocable living trust generally lets you transfer ownership of your property into a trust throughout the course of your lifetime. It gives you more control over your estate, both before and after death.
- A testamentary trust is generally created by the terms of your will and goes into effect upon your death. It can't be amended or revoked.
- A special needs trust is created to provide supplemental income for the welfare of an individual with a disability. The trust can supply funds for travel, education, out-of-pocket medical expenses, and personal care expenses not covered by government programs.
Risk Disclosures
Neither State Farm® nor its agents provide tax or legal advice.
State Farm Life Insurance Company (Not licensed in MA, NY or WI)
Bloomington, IL
State Farm Life and Accident Assurance Company
(Licensed in New York and Wisconsin)
Home Office, Bloomington, Illinois
IL - 27.6
Not FDIC Insured
State Farm Bank®, F.S.B., Bloomington, Illinois ("Bank") is a Member FDIC and Equal Housing Lender. NMLS ID 139716. The other products offered by affiliate companies of State Farm Bank are not FDIC insured, not a State Farm Bank obligation or guaranteed by State Farm Bank, and may be subject to investment risk, including possible loss of principal invested. The Bank encourages any interested individual(s) to submit an application for any product(s) offered by the Bank. We also encourage you to obtain information regarding the Bank's underwriting standards for each type of credit or service offered by visiting statefarm.com® or by contacting the Bank at 877-SF4-BANK (877-734-2265); If you are deaf, hard of hearing, or do not use your voice to communicate, you may contact us via 711 or other relay services. To apply for a Bank product, you may also see your participating State Farm agent.
