August 2022 Special Section
2 | August 2022 | NorthFulton.com | ForsythHerald.com
BANKING & FINANCE• Sponsored Section
How to fund your trust at the bank Brought to you by – Michelle Wilson, Wilson Legal, PC You signed your trust and now your attorney says it’s time to “fund” your trust. What does that mean? It means that you need to decide what you will do for each asset so that it is owned by your trust now or put into your trust after you pass away. We call this pointing to the trust. When it comes to dealing with banks, our clients have found that banks no longer allow you to simply change the name of the owner from you as an individual to your trust name. You have two options WILSON with banks to fund your trust (revocable or irrevocable). Create a separate account in the trust name and move funds over to it. You can use the trust account as a reserve account or emergency account or you can use it as your day-to-day operating account. If
you want to operate your day-to-day activities under the trust name, you don’t have to move all of your billpay transactions over all at once. Open the new account in the trust name and gradually move your billpay payees over to the new account. When you’re done, you can close the old checking account. The other option is to simply make your trust the beneficiary of your account. This option works great if you have accounts at a bank or credit union which doesn’t allow trusts to own accounts. It also works to avoid probate with the least amount of effort on your part. Most banks will change your beneficiary at the local branch. Make your trust the beneficiary of all your accounts and insurance policies or run the risk of having to spend thousands of dollars on a probate process you could have avoided. Banking rules change, but your protection doesn’t have to. Call us if you need a hand: 770-205-7861. We love helping people avoid taxes, court costs, and fees. Stay funded. Michelle Wilson, Attorney & Mom
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BANKING & FINANCE • Sponsored Section
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Financial literacy tips Brought to you by – Soraya Kenney, 1st Vice President and Johns Creek Branch Manager – American Commerce Bank Q. As my kids get their first jobs and start thinking about college, how can I help them be prepared to responsibly manage their finances? A. According to a recent survey from the National Financial Educators Council, as many as 75% of students are confused about being responsible with their money. They struggle with how to create a budget, how to balance saving and spending and how to keep track of their funds. Most of the students surveyed KENNEY received most of their financial education at home. As their parents, there are some simple steps you can take to help your kids be in the 25% who feel ready to manage their own finances. Q. What is a good first step in this education process? A. Creating a budget is a good place to start. Help your student set up a spreadsheet or download a budgeting app and have them begin to enter their information. If they have a job, their paycheck is a good place to start. But what if they don’t have a job or are heading off to college and don’t plan to work for the first few months? In that case, begin with the funds they currently have in their savings account or the weekly/monthly allowance they’ll be given by you. Q. What are the items we should
include in their budget? A. This is the time to have a discussion about needs and wants. They may need a pair of sneakers for daily wear but want the latest superstar-endorsed brand. You may agree to purchase the basic brand but decide the additional cost for the high-end pair must come out of their budget. In addition, your student should include expenses for entertainment and meals out with friends. Don’t forget to have them include funds for emergencies (or unexpected opportunities they don’t want to miss). Finally, be sure to encourage them to designate a portion of their income or allowance to a cause that’s important to them. Q. What about credit and debit cards? A. There are very important differences between debit cards and credit cards. Make sure your student understands that their debit card is the equivalent of cash and as soon as they use their debit card, that money comes out of their checking account. Using a credit card does not immediately take the money out of their checking account but they still need to be cognizant of how and when they’re using it to avoid a big bill that they can’t pay in full at the end of the month Q. This all seems pretty involved. Are there any outside resources that can help with this education process? A. Yes, right here at American Commerce Bank. We have experienced and committed bankers who will gladly teach a financial literacy class to school groups, scout troops, sports teams or any group who might benefit from our experience. Call Soraya Kenney at 470.422.1200 to schedule your group.
NorthFulton.com | ForsythHerald.com | August 2022 | 3
4 | August 2022 | NorthFulton.com | ForsythHerald.com
BANKING & FINANCE• Sponsored Section