What is a Trust Fund

What is a trust fund?

Trust funds are arrangements that allow individuals to create sustained benefits for another individual or entity. Sometimes parents establish a trust fund to provide some degree of financial security for their children, with the trust providing resources to meet basic needs after the parents are deceased. A trust fund can also be established to benefit a charity or other non-profit organization.

The main idea behind a trust fund is to allow the grantor or donor who established the fund to rest assured that loved ones or a particular organization receive the benefit of his or her estate after the grantor dies. The trust is aimed at providing sustained support in some manner.

A trust can include a wide range of assets. In addition to cash, a trust fund may include resources such as property, stocks, bonds, or any other type of financial instrument. The trust fund may be managed by a single trustee, or be structured to allow for more than one trustee. It is the responsibility of the trustee to see that the resources included in the trust fund are used in the best interests of the recipient of the trust.

Why open a trust fund?

A trust fund can serve a dual purpose that has great benefits. It can provide protection for family assets and money when the grantor dies against taxes and claims. And a trust can provide for the future needs of the grantor or his family or business. Money or assets put into a trust fund are not subject to estate taxes and may be exempt from other types of taxes as well, depending on the type of trust you have set up.

A trust:

* Provides stability

* Saves time and money in court

* Saves on taxes

* Privacy and no questions

No matter what type of trust fund you end up choosing, considering one is a wise choice. Trust funds can be an avenue for sound financial benefits and to make sure your family and estate are taken care of the way you would do it if you were here. Preparing now for the financial future lets you enjoy today without worrying. Tough Times has now opened a full funeral service, contact us for free advise