The Innocent Trust Fund Baby
For a long time, many people believe that those born to wealthy families have it easy. That money is no longer a concern for them, and that they have trust funds to support their money problems. We may need to take a step-back to learn the basics of a Trust Fund.
Your Neighbor can have a Trust Fund without you knowing
More often than not, parents want the best for their children. They want to be able to provide for their needs, and make it easier for them. There are many way to do this, creating a Trust is is one way.
A Trust is an option available to everyone, including individuals and married couples. It is a tool that a anyone can create and enjoy. For most parents, they create a Trust for the benefit of their children.
For a Trust to work, it must have the necessary funds to take effect. The Grantor, or creator of the Trust, must fund the Trust with assets. Bank Accounts are usually used because it is the easiest to manage.
What most people don’t know about a Trust
While the Grantor is alive, they can distribute funds from the Trust to to their beneficiaries. But what makes a Trust unique is that the Grantor can still distribute funds even after their death.
This is possible because a Trust is actually a set of instructions about the Grantor’s Assets. The Grantor can decide to distribute funds outright after their death, or put a condition on how distribution can take effect.
Another unique feature is that anyone can create a Trust to invest the funds and generate income. This makes Trust a flexible tool for whoever wants to create a trust.
While a Trust may seem easy to create, better consult an experienced estate planning attorney. Schedule a fee initial consultation. We are ready to listen and help you understand how simple creating a Trust can be.