Though you can financially provide for your family right now, the future always seems uncertain. If you want to ensure you can take care of them later, taking the necessary steps to guarantee security is essential. Luckily, you can set up a trust fund to help provide financial support for your loved ones. Keep reading to learn more about this estate planning tool and how a Washtenaw County trusts attorney can help.
What Is a Trust Fund?
A trust fund is an estate planning tool to help you manage your assets before and after you pass. Generally, these assets are held in the fund until specific requirements are met, like a person turns a particular age or ten years pass since the trust was established.
One of the significant benefits of a trust fund is that the assets included do not go through the probate process after your death. Also, trusts provide peace of mind that your funds will be handled according to your wishes.
Choose the Best Option and Determine the Terms
Once you’ve established that you want to set up a trust, you’ll need to decide what the most beneficial option for your needs is. There are many different choices, each with benefits and drawbacks, so ensuring you research the option that works best for your needs before making a decision is essential.
Generally, there are four common choices when establishing a trust fund – living, revocable and irrevocable, and testamentary trusts. However, there are more specialized options available for specific circumstances. For example, you can choose from any of the following to create your trust:
- Charitable
- Spendthrift
- Special Needs
- Generation-skipping
These are just a handful of the specialized trusts available for you to choose from.
You will also need to determine the guidelines surrounding your trust. This includes choosing a trustee, who is the party responsible for managing your funds, deciding what assets you want to place in the fund, and the terms in which they will become available to the beneficiary or beneficiaries.
Meet With an Attorney
Once you’ve decided what kind of trust you want to set up and what assets you’d like to distribute, you’ll need to meet with an attorney to make the document official. This is the most crucial step, as if the will is not legally valid, none of the terms or conditions included will be recognized.
A competent attorney will help you create a document to guide you in the right direction to ensure the trust fund is established legally.
If you’re ready to set up a trust fund to support your loved ones or donate to your local charity, don’t wait to reach out to Collis, Griffor & Hendra. We can help you navigate the trust fund process to provide peace of mind for the future.
