A lot of people think trusts are only for the super-wealthy which is not entirely true. A trust can benefit anyone who wants to manage how they leave their money to their family. The trust can give you control over who gets what and when, how they get it, and why.
A trust can benefit anyone who wants to manage how they leave their money to their family.
Create Containers for Your Assets
Trusts are like containers you can put things into. You the grantor can place assets like your house, life insurance policies, investments and other possessions into a trust. These assets become property of the trust and are managed by your trustee.
Pick Someone You Can Trust
You appoint a trustee to ensure your wishes are carried out. As grantor, you decide who receives the assets inside your trust. Typically, your spouse, your children, grandchildren and charities of your choice are the beneficiaries who receive the assets held in trust.
Some trusts are designed to manage who receives your assets and others may offer tax planning benefits
Decide Where Your Money Will Go
When you create a trust you determine how the funds inside your trust will be used and when they will be dispersed. For example, you may want to use assets in your trust to jump-start your children’s careers when they are 25 or supplement their retirement when they turn 60. You may want to pay college tuition expenses for your grandchildren or provide annual scholarships to your Alma Mater. Your appointed trustee ensures everything is managed according to your instructions.
There Are Many Kinds of Trusts
It’s important to know there are different kinds of trust for different purposes. Some are designed to manage who receives your assets and others may offer tax planning benefits.
Here are some examples:
- Living Trust
- Special Needs Trust
- Marital Trust
- Credit Shelter Trust
- Irrevocable Life Insurance Trust
- Charitable Remainder Trust
- Qualified Personal Residential Trust
Make sure you work with financial experts so that your trust is properly structured to carry out your specific intentions. A trust can offer you and your family many financial advantages. You’ll want to talk with an estate planning attorney find out how you can create a lasting legacy for those you love the most.
For more financial planning tips, download my free report: “8 Steps to Organize and Optimize Your Financial Life”. Thanks for reading!