A lot of people think that trusts are only for the super wealthy. Not true. Trusts can benefit anyone who wants to manage how they leave their money to their family. A trust gives you control over who gets what and when and how they get it and why.
How do trusts work?
You, the grantor, can put assets like your investments, property, your insurance policies and other processions into a trust. These assets become the property of the trust and are managed by your trustee. You appoint the trustee to ensure your wishes are carried out.
As Grantor, you decide who receives the assets inside your trust. Typically your spouse, your children your grandchildren and charities of your choice are the beneficiaries who receive the assets held in trust.
When you create a trust you determine how the funds within the trust will be used and when they will be disbursed. For example, you might 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 or pay university tuition costs for your grandchildren. Your appointed trustee ensures everything is managed according to your instructions.
It's important to know there are different kinds of trust for different purposes. Some are designed to manage who receives your assets and when, others may offer tax planning benefits. Make sure you work with financial experts so that your trusts are properly structured to carry out your specific intentions.
Take advice. Trusts can offer you and your family many financial advantages. Find out how trusts can help you make a lasting legacy for those you love the most.
The best time to start is right now.