It’s understandable that parents or grandparents want to be sure their loved ones’ needs are taken care of after they pass on. A common way for Fort Myers residents to leave an inheritance for their heirs is by setting up a trust fund. There are many ways that trusts can be beneficial to recipients. Contrary to popular belief, a family does not have to be wealthy to set up a trust. Trusts can be especially useful if the grantors would like to be sure their children or grandchildren are left with an inheritance but do not misuse the funds.
According to USA.gov’s page on trusts, this form of estate planning is a flexible and customizable way for the grantor to control what happens to estate funds after he or she dies. A grantor can outline exactly how trust funds are to be distributed, such whether beneficiaries receive funds immediately after the grantor’s death, in increments or under certain conditions.
For example, states an article from CNN Money, grandparents who want to help their grandchildren receive an education can stipulate that the trust funds are to be used for tuition and other educational purposes. Trust funds can be set aside entirely for school, or a portion reserved to be awarded to the beneficiary after graduation. Grantors can even specify that the funds are awardable under strict conditions, such as stipulating the beneficiary attends a certain school or pursues a specific degree.
Additionally, a clear and detailed trust can protect the estate from going into probate after the grantor’s death, and may be eligible for certain tax benefits or exemptions. The planning of a trust can be complex. It is advisable to speak with an estate planning attorney to be sure nothing is misconstrued or left out.