Why You Should Have a Trust Fund
- July 11, 2020
- Posted by: CKH Marketing
- Category: Financial Tips
As the tax season comes to a close, many look for ways to diversify their assets and plan their estate. A trust, or trust fund, is an estate planning tool that forms a legal entity to hold property or assets for a person or organization that is managed by a trustee. Trust funds cover a variety of assets including money, property, stocks, businesses, or any combination of these.
There have been many changes to how trusts are created and implemented over the last few years, but they can still be a viable option. However, there are some downsides to setting up a trust. Trusts are exposed to higher tax liabilities than an individual and can be more complicated and costly to manage. Though they have their drawbacks, there are many advantages to setting up a trust:
Allot wealth to minors once they reach a certain age
Spacing out assets over time rather than all at once, ensuring responsible money management practices
Assigning a trustee to take over the management and distribution of assets can diminish the possibility of elder financial abuse and aid with disabled beneficiaries
Carry out wishes for a specific charity or a philanthropic individual
Help to manage and/or transfer family-owned businesses, property, and valuable items
With these key takeaways in mind, creating a trust can be beneficial not only to you, but also to the people around you. Forming these can keep your money, assets, and businesses safe and in trusted hands for years (and even generations) to come.
The above article only intends to provide general financial information and is based on open source facts, it is not designed to provide specific advice or recommendations for any individual. It does not give personal tax, financial, or other business and professional advice. Before taking any form of action, you should consult a financial professional who understands your particular situation. CKH Group will not be held liable for any harm / errors / claims arising from the articles. Whilst every effort has been taken to ensure the accuracy of the contents we will not be held accountable for any changes that are beyond our control.