The United Difference - Trust Page


Why Create a Trust?

 
A trust fund is an excellent way to ensure your assets are handled according to your wishes after you pass away. It allows you to control who receives money, personal items, or real estate, as well as when and how those assets are distributed. Trust funds keep your most valuable assets safe until the time comes that you want to share them. They also help protect your assets from going through the probate process after your death.    

Different types of Trusts

There are several common types of trusts, and the one you choose will depend on your specific situation and needs.  
 

Revocable Trust is a flexible trust that allows you to make changes at any point in your life. This could include updating beneficiaries or add/removing assets. 

Irrevocable Trust is a type of trust that cannot be changed or cancelled after its creation. Once you establish an irrevocable trust and place your assets in it, you relinquish control to the trustee you’ve chosen.

Living Trust is a trust you set up during your lifetime that designates a trustee to administer your assets to your beneficiaries after your death. A living trust can be either revocable or irrevocable.

Testamentary Trust is a trust that comes into existence only after you’ve passed away. The terms of the trust are typically included in your will. A testamentary trust is irrevocable by definition.  

There are also trusts for specific uses, such as a special needs trust or a spendthrift trust. The best way to ensure that you are creating the trust type that meets your specific situation and follows all your state rules and regulations is to use a lawyer.

Some beginning thoughts to start creating a Trust fund

  1. Choose a name for your trust.
  2. Designate your trustee and be sure to designate a successor trustee.
  3. Choose your beneficiaries. 
  4. Decide how your trust will be administered.
  5. Choose a lawyer to write the trust document for you to sign and notarize.
  6. Open and fund your trust account.
Setting up a trust fund can be a critical part of estate planning. You can rest easy knowing that your estate won’t have to go through probate, and your assets will go into the right hands just the way you intended.
 

The UBI Trust team - call us today!

Don’t forget your IRA contribution for 2025


It’s that time of year when everyone is working on their 2025 tax returns and calculating their retirement contributions. For 2025, the deadline for making a contribution is April 15, 2026. The contribution limits for 2025 for a Traditional IRA/Roth IRA are:
    • $7,000 if under age 50*
    • $8,000 if age 50 and greater* 
      *OR 100% of your compensation, whichever is less
Always check with your tax preparer for help in determining which retirement product is best for you and if you meet all the eligibility requirements.
 
Stop at any United Bank of Iowa office to open a new retirement account or make a contribution to an existing account. We are here to help you achieve your retirement dreams.