Learn more about trust funds and how you can use them.
Trusts are a valuable part of estate planning because they can offer financial protection, tax benefits, and long-term support to loved ones. However, trusts have complex legal structures that can make them hard for a person to understand without help. When crafting your estate plan, consult your attorney at The Millman Law Group to determine which trusts may help you achieve your goals. Many people have heard of trust funds but may not know how they work or how they can be used. The following information will introduce you to these trusts and help you determine whether they have what you need.
What Are the Benefits of Trust Funds?
Trust funds contain assets or property on behalf of a person or organization. The trust funds are managed by a trustee named when the trust is created. They can include money, bank accounts, stocks, property, businesses, and more. The creator of the trust (the grantor) determines how and when assets will be distributed. The requirements are often related to age or place in life.
The biggest perk is the control a trust fund provides over the management of assets. Trust funds guarantee assets are taken care of until beneficiaries come of age and help them avoid probate. Funds can even be used to allocate funds for purposes like healthcare or education.
Working with an experienced estate planning attorney to create your trust fund is the best way to ensure it functions as intended.
How Much Money Might Be in a Trust Fund?
The amount of money in the trust fund depends on the creator, the trust type, and how much the account has grown since its creation. Any interest gained on the money inside the fund will also go to the beneficiary.
Do You Need Certain Funds to Create a Trust?
While many people associate trust funds with wealthy families, there is no amount required to create a trust. A trust fund can benefit beneficiaries with any amount of money, whether that is $100,000, $500,000 or more. No matter what you wish to leave to your beneficiaries, your estate planning lawyer can help you build a trust that accomplishes your goals. Besides passing down wealth, trusts are also highly valuable for protecting heirs from creditors, protecting spendthrift beneficiaries from poor spending, avoiding probate, and much more. Any individual can create a trust to enjoy one or more of these benefits.
Are Trusts and Trust Funds Different?
The difference is slight but important. A trust is an agreement that specifies how certain assets are distributed and managed. A trust fund is a legal entity into which the assets are placed when the trust is created. The creation of a trust and its fund go hand in hand, which is why these terms are often used interchangeably.
If you would like to learn more about how trust funds may factor into your estate plan, don’t hesitate to contact The Millman Law Group. Our experienced attorneys are ready to help you navigate complex scenarios.
Estate Planning Made Easy With Millman Law Group
Millman Law Group, PLLC is rare because it’s one of the only law firms that offer life planning in South Florida. From life care planning to the preparation of detailed estate plans, Millman Law Group has committed to serving Floridian elderly communities in Boca Raton, Palm Beach County, Ocean Ridge, Hillsboro Beach, and many other areas since 2018. Our dedicated team also specializes in special needs Trusts and catering to any age demographic because we know for certain it’s never too early to start preparing you and your family for your future. For the latest news in estate planning and elder care law, follow us on Facebook, Twitter, Linked In, and Pinterest. You can also contact us at 561-463-6480.