Unfortunately, there’s a notion that only wealthy families create trust funds, but this is far from the truth. A trust fund is a great way to help care for your loved ones while alive and after your passing or to give back to charities you hold near and dear to your heart. Unfortunately, this can be a confusing process to set up, so it’s essential to contact a Broward County trusts lawyer to help you navigate the process. Keep reading to learn more about what this document entails and your options.
How Does a Trust Fund Work?
A trust fund is a type of estate planning document that allows the creator to hold funds and assets for a beneficiary. This beneficiary can be a friend, family member, or charitable organization.
One of the main reasons people choose to create a trust is because it gives them greater control over the assets they are leaving. For example, if you have children, you may worry that giving them control of their own assets may not be the best decision. As such, putting funds in a trust allows you to decide when they receive these assets, such as granting them access when they turn twenty-five.
There are many kinds of trusts that can be established depending on your needs. Irrevocable trusts can not be modified once they are created, which is ideal for those looking to protect their assets from potential creditors. A special needs trust can help provide for beneficiaries with disabilities, to ensure they can still receive access to the funds set aside for them without impacting their eligibility for government support programs. In fact, there are even trusts that can help you take care of a pet after you pass!
How Do I Establish a Trust?
To establish a trust, you’ll first need to decide what kind of trust you’re looking to establish. Because there are so many options, it can be overwhelming to determine which is best for your needs. As such, it’s in your best interest to consult with an experienced attorney to decide which trust you should establish.
Once you have decided the best option for your needs, you must choose who will serve as the trustee. Much like the executor of a will, this person is responsible for managing and distributing the assets in your trust according to the terms you’ve set. It’s vital to choose someone who is trustworthy and reliable, as this is a big responsibility to assume.
When you’re ready to set up a trust fund, it’s essential to ensure you have the guidance of an experienced attorney to help you. Unfortunately, these documents can be hard to navigate, so enlisting The Probate Lawyers to help guide you through this process is vital. Contact our firm today to learn how we can assist you when creating a trust to help you achieve peace of mind.
