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FREQUENTLY ASKED QUESTIONS |
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FREQUENTLY ASKED QUESTIONS |
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GENERAL
PERSONAL TRUSTS
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Who is FirsTrust Financial Services, Inc.?
FirsTrust is a trust company chartered under the laws of the State of Arkansas. FirsTrust is a wholly owned subsidiary of Home BancShares, Inc. (HBI) located in Conway, Arkansas. HBI owns banks in Arkansas and Florida. The primary regulators for FirsTrust are the Arkansas State Bank Department and the Federal Reserve. Who comprises the Board of Directors of FirsTrust?
John Bailey - CEO & Manager of Bailey Properties, LLC, Little Rock
Will my assets be safe?
Yes. FirsTrust is regulated by the Arkansas State Bank Department and the Federal Reserve Bank. All decisions regarding your account will be reviewed by internal committees; an outside auditor; and the above referenced regulatory agencies. The assets and capital of Home BancShares, Inc., unconditionally support the operations of FirsTrust. Once FirsTrust becomes the fiduciary of my account, who will administer it?
Your account will be administered locally. All decisions related to your account will be made by your local administrator. Your local administrator will seek assistance from other FirsTrust staff members or consultants relative to specific investments for your account. Will my use of FirsTrust affect my present banking relationship?
No. FirsTrust is strictly a fiduciary entity. It does not take deposits or make loans. FirsTrust's sole business purpose is to serve the estate planning, retirement planning, and financial services needs of its customers. Will I need to have my will or trust changed to name FirsTrust as executor or Trustee?
Yes. FirsTrust is not automatically the successor fiduciary to your current will or trust. We will assist you in having your current will or trust amended to name FirsTrust as the new fiduciary. We will also assist you with all paper work necessary to move any active fiduciary accounts you now have to FirsTrust. What do I need to do to have FirsTrust Assist me, since I do not have a Will or Trust?
Contact FirsTrust and meet with your local Trust Officer. We will guide you and coordinate the process with your attorney and accountant in order to accomplish your goals. Why should FirsTrust be your first choice for trust services?
There is no substitute for the knowledge and tempered judgment that comes from years of experience. With a professional team such as ours, you can have all of our resources from knowledge in taxes to specialized book keeping on your side. Our services go far beyond setting up your account. We remain dedicated to careful, concerned, ongoing supervision of all of your interests.
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What is a Living Trust?
A Living Trust is a legal document that looks a lot like a Will. In fact, it does what most people think a Will does — and much more. Because there is no probate with a Living Trust, most of the expensive court proceedings and delays are eliminated, your privacy is preserved, and emotional stress on your family is minimized. A Living Trust is extremely hard to contest, may provide investment and estate management during your lifetime, and it even provides very effective prenuptial protection. A Living Trust does not reduce state or federal estate taxes. I have a Will, why would I want a Living Trust?
Contrary to what many people believe, a Will may not be the best way to distribute your estate because a Will does not avoid probate. Additionally, a Will goes into effect after you die, and therefore provides no protection against physical or mental incapacity the result of which could require supervision of your person and estate by the Probate Court. If I have a Living Trust do I still need a Will?
Yes, you should have a "pour over" Will in the event you forget to retitle any property in the name of your trust. The Pour Over Will serves the purpose of a safety net and "pours over" your assets in to your trust after your death. The property may have to go through probate first, but at least it can then be distributed as part of your overall plan. Are Living Trusts new?
Living Trusts have been used effectively, in one form or another, for hundreds of years. What is Probate?
Probate is the legal process through which the court makes sure that, when you die, your debts are paid and your property is distributed according to your Will. If you don't have a Will, the state in which you reside will provide for distribution of your estate by statute. This form of distribution may not be what you intended. Why should I avoid Probate?
Probate can be expensive. Legal/executor fees and other costs are usually estimated at 3 – 6% or more of an estate's gross value (before debts are paid). It takes time — often 6 month or longer. During part of this time, the assets are usually frozen so an accurate inventory can be taken. Nothing can be distributed or sold without the court and/or executor's approval. Your family has no control. The probate process has control. Doesn't joint ownership avoid Probate?
Not really. It usually just postpones it. When the surviving joint owner dies, or if both should die at the same time, the property must be probated before it can go to the heirs. Watch out for other risks, too. By adding a co-owner to your property, you may lose control; expose it to the other owner's debts; and require your co-owner's signature to sell or refinance. Also if the co-owner becomes incapacitated you may need approval from a third party, even if your co-owner is your spouse. How Does a Living Trust avoid Probate?
With a Living Trust you transfer all of your property from your individual name to the name of your trust, which you control — such as from "Joe & Jane Smith, husband and wife" to "FirsTrust Financial Services, Inc.", Trustee for the Joe & Jane Smith Living Trust. Legally you no longer own anything (everything now belongs to your trust), so there is nothing to probate at your demise. While the concept is simple, this is what keeps your assets out of probate court. Should an Attorney draft my Trust?
Absolutely. An experienced Estate Planning attorney can provide valuable guidance and assistance for your situation and assure the legal documents are prepared properly. Avoid generic "do-it-yourself" formbooks, because they can't address every family's unique needs. Is a Living Trust Expensive?
No! Especially when compared to the costs of probate. How much you pay will depend on how complicated your plan is; the type and amount of your assets; and if you need additional tax planning, etc. Be sure to ask for an estimate in advance. Once your trust document is complete we will be happy to review it with you at no cost. Is it hard to transfer property into my Trust?
Not really, but titles must change on real estate (local and out-of-state) and other property with titled ownership (checking and savings accounts, stocks, CDs, insurance, mutual funds, etc.). We can assist you in getting your assets retitled in the name of your trust. Should I consider a Corporate Fiduciary Trustee?
Although you can be trustee of your own trust, many people select a corporate fiduciary trustee such as FirsTrust, especially if they don't have the time, ability or desire to manage their own investments. Corporate fiduciary trustees are in the business of managing trusts. We are reliable, objective, government regulated, experienced investment managers, and we outlive individual trustees. Our fees are very reasonable. In addition to professional asset management, FirsTrust can pay your bills (rent, utilities, charge cards, etc.) and collect your social security and pension benefits. Do I lose control of the property in my Trust?
Absolutely NOT! You keep full control over your property. You can do everything you did before — buy and sell property, make changes, even cancel your trust at any time (remember, it's revocable). Nothing changes but the name of the assets. What does a Successor Trustee do?
If you become physically or mentally incapacitated, your successor trustee manages your affairs for as long as necessary using your assets to pay your expenses. When you recover, you automatically resume control. At your death, your successor trustee pays your debts, and distributes your property according to your instructions. If I become incapacitated, who has control?
If you select a corporate fiduciary as your trustee or co-trustee, we will continue the management of your trust for you. |
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