Many people believe that trust funds are only for the rich and those who intend to gift millions of dollars. It could be right for you even if you want to leave a smaller amount to your family.

A trust is an entity that holds property for the benefit of a person, group, or organization. Funds can vary in type based on the purpose and provision. The “grantor” or “settlor” establishes the trust with her property on behalf of a beneficiary. The beneficiary can be the grantor or settlor in some situations or another person. The trust’s assets do not belong to the beneficiary but are for her benefit according to the instructions of the trust at its creation. Ultimately, the trustee ensures that the instructions are followed and that the purpose of the fund is enacted.

Trust can provide the following benefits:

• Avoid Probate
• Asset management
• Protect beneficiaries
• Protect assets from creditors or untrustworthy family members
• Tax planning or saving

It may not be right for you if the cost of creating and administering it outweighs the principle. You also want to be sure your trust is tax-friendly. Your situation is unique, and there are many factors to consider when determining whether to set up a fund.

We would love to discuss your estate planning. Please contact us or call us at 864-804-6330.