The straightforward definition: A trustee (our institution) agrees to hold ownership of a piece of property for the benefit of another (beneficiary). The beneficiary maintains full use of the property. The First National bank would only act upon your written direction to do so. Tax bills, land inquiries, and ownership records are shielded by the institutions name to protect the privacy of the beneficiary. These can be as simple as a single-occupancy home or as complex as a multi-state real estate investment. Corporations may wish to do this when compiling multiple tracts of land to avoid arousing suspicion or alerting the public on their future building plans. Another example of a benefit is interests can be easily transferred without recording a deed.
- Not Bank Deposits
- Not Insured or Guaranteed by any Bank
- Not insured by any federal government agency
- Not FDIC Insured
- Involves Investment Risk, Including the Loss of Principal