Creating a trust fund is no longer an exclusive privilege for the rich. Everyone can acquire one or as many as they like depending on his or her needs and preferences. Trusts can assist in ensuring the property and assets you’ve worked hard for shall be used and distributed according to your, the grantor, wishes.
How does this work? If you are planning to create a trust (or trust funds), you entrust these assets and properties to a legal entity like a trust department of a bank to manage them for a period of time or after a condition/s has been met. This person or entity to which you gave the obligation of taking care of them is called the trustee.
The grantor, also known as the donor or settler, also have the right to choose who will be benefited from the trust. He or she is called a beneficiary. In fact, there are cases wherein the grantor, the trustee and the beneficiary can be one person. If this is the case, the grantor should appoint someone to be his or her successor trustee should there be any case that he dies or becomes disabled. The good thing about setting up a trust fund is that it saves you the time, money and paper works involved in the probation process unlike in a will..
If you are planning to acquire one, here are easy steps to follow on how to set up a trust fund.
1.Know Your Need For A Trust Fund.
Trusts have already diversified themselves to suit everyone’s needs. Decide on the type of trust fund that you are planning to acquire. If you want a trust fund for your children, then you can probably opt for a living trust that can be accessed while you still live. On the other hand, if you want to protect your properties and assets in case you die, you can opt for one that can protect it from creditors and preserve them for your beneficiaries.
2.Have A Trustee.
3.Choose A Person, An Organization Or A Bank That Will Handle And Manage The Trust Funds For You. You can also choose yourself as the trustee of these funds and act in the best benefit of your beneficiaries.
4.Choose The Beneficiary Or Beneficiaries For Your Trust Funds.
5.Contact A Lawyer.
The lawyer possesses the legal knowledge in setting up the documents you need for finalizing the trust funds. Contact one to draft the stipulations and the conditions that you want for your trusts and ensure that there will not be a problem in the process.
6.Entrust The Properties And Assets You’ve Set Up As Trust Funds To Your Chosen Trustee.
After all the legal documents have been finalized, you can already put these assets and properties to the safekeeping of your trustee.