Have you made a decision about how your assets should be handled if you pass away? If not, speaking to a trust fund lawyer about creating a trust may be recommended. A trust fund is a really established entity that is made up of your assets, such as bank accounts, stocks and bonds, or even real estate property. Take a look at a few common questions people have about creating a trust fund and the answers you should know before securing a trust fund law firm.
Who manages the trust fund?
The assets held in a trust are handled by an appointed trustee until specific conditions or contingencies are met. For example, some people create a trust fund that their children will inherit when they reach a certain age or finish college. People often entrust the management of the trust fund to a trusted family member or loved one, but you can also appoint an attorney as the trustee. In this case, the attorney will be wholly in charge of making sure your designated contingencies are met before the trust fund is released to the benefiting party.
How much money can you include in a trust fund?
There are no set limits for most types of trusts when it comes to how much money can be included. There can, however, be recommendations on how much should be placed in a certain type of trust. When you talk to a trust fund lawyer, they will offer sound financial advice to help you make the best decisions.
What is meant by a "blind trust?"
A blind trust is a type of trust fund that is managed by a trustee that is kept private. In other words, the beneficiary of the trust will not know who has been appointed as the trustee for the trust. This can be an ideal arrangement in the event there are potential conflicts that could arise because of the arrangement. For example, a parent may not want their child to know that they have appointed a step-parent as the primary trustee.
What are the disadvantages of creating a trust?
The only disadvantage of creating a trust is this can be more complicated and costly than creating a will. Some people avoid creating a trust purely because the process can be a bit more time-consuming. However, the asset protection offered by a well-designed trust is immense and well worth the investment for most people.
Reach out to a trust fund law firm like The Ritchie Law Group to learn more.
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