Though they have a negative reputation for being available only to the wealthy, setting up a trust fund is a great way to help take care of your loved ones before and after your death. However, the process isn’t as simple as writing down your wishes. If you want to set up a trust fund, you’ll need the help of a Rockland County trusts attorney to help guide you through the process.
What Is a Trust Fund?
Though many people think that a trust fund is just a way to give money to your family, this is not the case. While yes, a trust fund is a way to transfer assets to beneficiaries, it is a complex legal document with rules and stipulations.
For example, you may want to help give your grandchild financial support but don’t want them to spend all the money at once. Instead, you can set up a trust that will release the funds once they are at a more responsible age.
Trusts also ensure your assets are managed according to your wishes, especially after you pass.
What Are the Benefits?
Setting up a trust may only seem beneficial for the wealthy, but they are a great estate planning tool for anyone with assets.
One of the main benefits of a trust fund is that the assets won’t endure the probate process. Though not inherently harmful, the probate process can take months which delays the amount of time it takes for your funds to be delivered to your heirs.
Similarly, keeping your assets in a trust keeps them from the eyes of the public when your will becomes a public record. This helps avoid unnecessary family drama.
Also, as previously mentioned, one of the main benefits of a trust is that you can control the terms and conditions in which your money is distributed.
How Do I Set One Up?
If the idea of setting up a trust fund is appealing to you, ensuring you understand the process is crucial. The most important place to start is to decide which assets you would like to place in the fund. This allows you to make the best decision as to which type of trust you should establish based on the funds you’d like to hold.
The most popular choices for trust funds include revocable and irrevocable trust. However, there are subcategories that can apply to specialized circumstances, such as Special Needs, Charitable, Blind, QTIP, and Spendthrift trusts, to name a few. However, there are more to choose from, depending on your circumstances.
If you’re looking to set up a trust fund to help provide financial security for your loved ones, The Lauterbach Law Firm can help guide you through the estate planning process.