Planning for the future can feel overwhelming and morbid to consider. However, it is essential to ensure your wishes are followed after your passing or if you become incapacitated. This includes ensuring your loved ones are taken care of. Setting up a fund is no easy task, as it’s a complex legal process. If you’re interested in setting up a trust fund for your loved ones, a Putnam County trusts attorney is ready to help you set up your fund.
What Is a Trust Fund?
A trust fund is a type of “account” that holds assets for beneficiaries until they meet the requirements set in place by the stipulations of the document. For example, if you want to give your grandchildren money but don’t want them to spend it all at once, you can provide access to the funds once they reach a more responsible age.
When it comes to estate planning, many assume a will is their only option. However, a trust is a tool with many benefits compared to a will. For example, a trust fund is more private, as a will becomes a public record after you pass. Similarly, trusts don’t go through the probate process, saving your beneficiaries time and money.
How Do I Set One Up?
If you want to set up a trust, you’ll need the help of legal counsel to ensure the document’s validity. There are many websites that offer DIY options, but you should be wary of these as they may not be legally recognized.
Instead, an attorney can gather the details of your wishes to ensure that the document reflects what you would like to happen with your assets. Once the document is read, approved, and signed, the trust fund is notarized, making it legally binding.
In order to create a trust, however, you need to decide which assets you’d like to include in your fund, who the beneficiaries are, the type of trust you wish to establish, and who your trustee, or the overseer of the assets, will be.
How Should I Choose a Trustee?
Deciding who will be the trustee of your will is crucial. This entity manages your assets and ensures they are delivered to the beneficiaries according to the terms and conditions established in your trust. This party should be someone responsible.
Though many like to choose friends and family, as they often get a smaller amount of money from the trust, a safe option is to select an unbiased, outside entity like a bank or financial advisor. However, these services tend to cost more money.
If you’re struggling to set up your trust fund, don’t wait until it’s too late to get help from the Law Office of Andres D. Gil, PLLC. We can help guide you through the process of establishing a trust fund to help provide peace of mind for your loved ones.