We need to set our plans and priorities for the future. We may not know what will happen in the future. Some would keep their money in the bank, but some think about their families and make a Trust Fund. Trust Funds are cash, property, land, assets that can be transferred from one person to another. A Trust Fund will support a child’s needs in case his/her parents die. Trust Funds may also be given to our grandparent. Also, some individuals have Trust Funds for charities and organizations.
Trust Funds are only available to high income generating families back then. Now even the middle range families can have the benefit of a Trust Fund. It is because of the pursuance of the parents to earn more, earning millions is not impossible. The reasons why some want to create Trust Funds are they may be incapable of managing their wealth. Instead of spending it to non sense things, they would prefer to have a Trust Fund. Second, they don’t know how to manage their assets. Some would want to avoid probates and lessen their estate taxes. And third, they would want someone to receive their assets after their death.
There are steps on how to set up a trust fund. First, know your assets and properties. You must account and record all your assets so that proper documentation will be done. Errors and mistakes on properties should be avoided to avoid conflict in the future. Second, select your trustee. A trustee may be your child, parents or relatives that is close to you. Charities and organization may be included. When choosing a trustee, you must set guidelines on your own. Ask question if the assets that I will give will be beneficial to him/her. The most common trustee is the children because of education and basic needs. Third, seek for a lawyer for proper implementation of funds. Also ask him/her about the law. There is nothing wrong in asking. In that way, your lawyer may know how you understand the law and discuss it more to you. Fourth is that trust must be properly documented. It must undergo proper proceedings to avoid error in the future. Signatures are also very important especially if documents are involved. Make sure that your signature on the document are the same to you specimen signature to avoid fouls in the future. And lastly, speak to your attorney on what are the positive and negative sides of having a Trust Fund. Yes, it is very expensive and time consuming to have a trust fund. But we can never tell our future. It is better to be ready and prepared.