When the trust agreement is signed, the settlor decides exactly how much discretion to give the trustee in managing the assets. While some people impose very strict limitations, many person's allow the trustee to use broad discretion. Overly restrictive limits on the trustee's investment powers don't take into account changing economic conditions, and might prevent the trustee from capitalizing on potentially profitable shifts in investment markets. The trust customer is always protected by state trust law and federal bank supervision. Included in the calculation of property are the current value of a home or real estate, savings, a business interest, stocks, bonds, life insurance, securities, personal property, collections, and all other assets.
Many people are quite surprised to learn what all their property is worth at today's prices.
For example, the bank's personal agency services will provide investment advice and will execute and record investment transactions made under your instructions or at the bank's discretion. The trust department's services also include estate settlement and escrow accounts. He wished to provide for their living expenses and college education, but knew they were too young to manage his portfolio of stocks. Mr. and Mrs. Smith were both 76, and had accumulated a valuable portfolio of stocks and real estate through years of careful investment. Now, about to retire to a warm climate, the Smith's wanted freedom from investment matters.