Protecting your assets should never be an afterthought of wealth acquisition. The way that you manage your assets and investments can be one of the key indicators of long-term wealth and the future of a legacy.
Navigating the world of wills and the many different types of trusts can be overwhelming at first. But the more that you read about the different options available to you, the more you will begin to understand that the many different options will actually work in your favor, offering you flexibility, and something for every financial and personal need.
The terms of a good trust are just as much about protecting your assets as they are about distributing them. Of course you want your children and grandchildren to be able to enjoy your hard-earned estate, but do you really want your 18-year-old grandchild to blow it all on a spring break getaway or on a bad investment that they will regret in years to come? Creating the terms of your trust is a way to instill some wisdom into your dependents, something that they will surely be thankful for in years to come.
As you watch your children grow and perhaps also have careers, partners and children of their own, it will likely become increasingly important to you that you take care of the wealth that you've acquired during your lifetime, so that you can pass it on to the next generation. One great way to do this is through a living trust, which is a more flexible alternative to a will.
It can be in your best interest to reduce the amount of taxes incurred by your estate. After all, who wouldn't want to pass as much of their estate along to their loved ones as possible?
When parents and grandparents devise estate plans in order to leave their beneficiaries legacies, sometimes their estate planning attorneys may recommend establishing something called a spendthrift trust for one or more heirs. But what are these trusts, and for whom are they ideal?
Trust funds are a great way of compounding and building wealth in the long-term. There are two main types of trust funds, and it can sometimes be difficult to understand the differences between the two. These two types are testamentary trust funds, and living trusts. Living trusts are also commonly known as inter vivos funds, and that can lead to some confusion.
Parents who have the means to leave significant portions of their estate to their adult children are sometimes stymied by those very heirs when it comes to structuring the assets.
A grandparent leaves money to one of your children. The child is only 10, so you're named as a guardian. Essentially, the money is under your control until the child is no longer a minor.
Obviously, a trust is a way to pass money and assets on to your heirs. However, that's just one of the things you're interested in giving your children. You're also hoping to pass on your values, molding your kids into the type of people you want them to be. Can a trust be used to do this as well?