Trust funds are legal entities established for holding assets that benefit specific individuals or organizations. Children are commonly named as beneficiaries in wills and trust finds. Your assets can be safeguarded through a trust and used for the stewardship of your children. These are a few reasons to create a will and trust for your children.
Attorneys at SBEMP (Slovak, Baron, Empey, Murphy & Pinkney) law firm provides professional legal advice and services to clients in Palm Springs, Palm Desert, Rancho Mirage, Inland Empire, Orange County, Coachella Valley, Costa Mesa, San Diego, New Jersey, New York, and surrounding locations.
The assets held within trusts are protected from legal claims. All your assets, except retirement savings, can be seized by creditors and courts. Assets held in trusts have legal protection. This is important if you are forced to file bankruptcy after setting up targeted investment and savings in accounts for your children. Your business may fail or you may suffer the consequences of a civil lawsuit making this a necessary step.
Safeguard Your Money
You can name specific beneficiaries to a trust. Your intentions cannot be changed after this. You can include certain children while excluding others. The best part is that your wishes will be carried out as written in the trust deed. This is not the case with regular investment accounts or wills.
Your will may disperse your general assets. In relation to this, it’s subject to being challenged by unintended third parties. Trust will ensure the money only goes to listed people and no one else.
Ensure Long-term Availability of Funds
You get complete control over the funds when you create a trust, particularly the manner in which the money is going to be dispersed. You can either have it parceled over a period of several years or in a lump sum. You can even set it up as an annuity or make periodic payments, such as monthly, quarterly, semiannually, or annually.
This can be considered as a prevention against spendthrifts. You can ensure the money is not blown quickly by controlling the dispersion. This is especially important where young adult children are concerned.
Ensuring Intended Use of Money
Trusts can be set up in such a manner that you can determine the specific purpose of distribution. For instance, you may only want the trust money to be used for major expenses, such as purchasing a house, or paying for college education. Trust funds allow for placing restrictions. You may not want lumpsum to go to a child that is struggling with a substance abuse problem. Or, you may want to place restrictions on a child with a gambling problem.
Ensure the Money is Put to Good Use
Trust can help accomplish your goals much more completely and efficiently. This is crucial in case a parent dies before their children reach a mature age. Trust can guarantee that your children will have access to money. You can create a money using trust and will to make money available for their college education and care.
Lawyers at the SBEMP law firm serve clients from Palm Springs, Palm Desert, Rancho Mirage, Inland Empire, Orange County, Coachella Valley, Costa Mesa, San Diego, New Jersey, New York, and nearby locations for a range of legal practice areas.
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SBEMP LLP is a full service law firm with attorney offices in Palm Springs (Palm Desert, Inland Empire, Rancho Mirage, Indian Wells), CA; Indian Wells, CA; Costa Mesa (Orange County), CA; San Diego, CA; New Jersey, NJ; and New York, NY.
DISCLAIMER: This blog post does not constitute legal advice, and no attorney-client relationship is formed by reading it. This blog post may be considered ATTORNEY ADVERTISING in some states. Prior results do not guarantee a similar outcome. Additional facts or future developments may affect subjects contained within this blog post. Before acting or relying upon any information within this newsletter, seek the advice of an attorney.