Why Setup a Trust Fund For Your Children Instead of a Savings Account?
While it is perfectly fine and quite common to save for future emergencies with the help of a savings account, this might not be the best way to secure a financial future for your children. When opting for a savings account, you must keep in mind that there will be fees associated with the account, such as bank fees and taxes. However, by opening a trust fund instead, you can reduce your tax liability significantly as well as place stipulations on trust in regards to how the money is doled out.
Financial Security is Not Just for The Wealthy
Contrary to what you might believe, you don’t have to be a millionaire in order to hire a financial advisor. In fact, because you are not extremely wealthy, that should be even more of a reason to set things in place that will secure your future later on. While the initial set up fee can cost a couple of thousand dollars, the guidance that you will receive from a professional finance expert can be well worth it. Also, for a small percentage, you can even have your advisor manage your entire estate as well.
Benefits of Setting Up a Trust Fund For Children
Although most people’s estate planning goes as far a writing a will, this might not be enough to ensure your children are protected. Generally, once a person is deceased, their assets will have to go through the probate process. However, with a trust in place, you can typically avoid this lengthy and stressful process by having your assets distributed by a trustee according to your stipulations.
While talking with a financial planner, you should also consult with an estate planning lawyer in Las Vegas as well.