After accumulating a significant amount of wealth and residing in Indiana, you can only use so much of it during your lifetime. When you pass away and have a large number of funds left over, it may be prudent to have it put into a trust fund. Doing so can help ensure it’s distributed as you see fit.
Protecting your legacy by using a trust fund
Setting up a trust fund isn’t just for exorbitantly rich individuals. You can accumulate assets worth a large amount of money easily during a lifetime. The net worth of your home, investment accounts and life insurance policy can add up quickly. Leaving these funds to the next generation is an excellent way to help them out financially, and you can set some stipulations by utilizing a trust fund.
Using your funds wisely
Several options can be utilized when setting up a trust fund. Taking a portion of the funds and leaving them to a favorite charity may be one of them. In addition, funds could also be provided to a grandchild or other heir who is starting a business or has excelled academically and wants to further their education. A trustee would be put in charge of deciding on who gets funded.
Going through the legal process of creating a trust fund
When creating a trust fund, two options are available. You can set up a living trust or an irrevocable trust. The terms of a living trust can be changed at any time. Modifications aren’t allowed with an irrevocable trust.
Going through the steps to create a trust fund can leave a message on how you lived your life and what you cared about while living. Having it reflect your values leaves a legacy to the community or your family.