Are Trust Funds Secure?
Whether it’s money, a few assets, or an entire estate, you need to be able to safeguard them for the future. You need to be able to leave stuff behind for your children or grandchildren when the time comes. Becoming a grantor, hiring a trustee, and naming beneficiaries is all a part of creating a trust fund to protect your assets. Continue reading to learn whether or not trust funds will be able to secure your assets for you.
What Are Trust Funds?
A trust fund is a means of passing assets on to your children or grandchildren. The money gets put into a secured location until a certain criterion is met, i.e., reaching a certain age. These funds are not accessible until these conditions are met.
Trust funds are more reliable than a regular will. They provide relief from certain tax obligations, and they protect your legacy. This gives you a way to make sure that your family has the funds that they need to live a comfortable life long after you are gone.
Though you may be gone, you are still able to provide for them financially. The trust can be set up so that if something happens to you while your beneficiaries are too young to take care of themselves, they are still supported by the trust. The trust can then help to support them as adults, as well.
If you are considering how to set up trust funds for your beneficiaries, you may want to contact experienced Los Angeles trust lawyers to make sure you go about it properly.
In short, yes. Setting up a trust is more secure than a will because it can:
- Protect assets;
- Lower tax obligations;
- Manages your assets efficiently.
Certain types of trust funds are secure, and the funds can get protection against legal claims and creditors. Irrevocable trusts can make it so that creditors cannot seize the property as collateral to an outstanding debt.
Irrevocable trust funds are unable to be changed once they are created. The people listed as beneficiaries are the only ones who can receive the funds. They can even get set up to ensure that the funds get used for their specific purpose. With the right wording in the paperwork, you can guarantee that the funds are spent on major expenses, such as:
- College education;
- Buying a home;
- Starting a business.
These expenses usually help your beneficiaries generate an income and support themselves rather than supplementing an addiction or a gambling problem.
Is a Trust Fund Right for You?
When it comes to making plans for the future, trust funds can help you to protect your legacy and financially support your family for years to come. Make sure to do your research before making a final decision because irrevocable trusts are nearly impossible to change if you should happen to you change your mind. If you found this post helpful, make sure you check out the rest of our blog for some more great information.