The worst thing about life is that you can never know when things might go south. It is beyond our control and also why people use estate planning. And it allows one to plan and prepare tasks to manage your asset in case of death or incapacitation.
If you are someone who has been dealing with estate planning recently, you have likely come across terms like “funding a trust.” But what does it mean to fund a trust, and how does it work? Let’s learn more on the subject with Angelique Friend’s probate and get better clarity on the matter.
First Things First, What Does it Mean To Fund a Trust?
The term “funding a trust,” commonly known as trust funds, is an estate planning tool. This is a process where you will title your assets into a revocable living trust. This is more like a complex document you can incorporate into your estate planning.
Many even refer to these trust funds as a substitute for a will since the dispositive terms of one’s assets is contained within the trust instead of a will. This unique revocable trust will help you bypass the regulations of the probate court in case of your death.
How Do Trust Funds Work?
Generally, three different parties are involved in a trust fund, including the grantor, beneficiary, and trustee. All three parties play their role, such as the grantor is the person funding the trust. If you are the grantor, you will set up the trust fund to ensure your assets are inherited as you intend them to be.
The second party involved is the beneficiary, who is the person inheriting the asset of the grantor. This can be anyone from a charity organization to a family member of the grantor. Besides that, the grantor will lay out the terms of appointing a trustee with an attorney beforehand.
The trustee is the last party involved in a trust fund, an impartial third party responsible for managing the grantor’s assets on their behalf. After the grantor passes away, the trustee’s job is to distribute all the assets as per the agreement of the trust. This makes it imperative you always pick a reliable trustee like Angelique Friend Trustee.
Why Do You Need Trust Funds?
There are many reasons why people prefer choosing a trust fund over conventional wills. For instance, having a trust fund keeps your assets away from the reach of creditors in case they pursue you for unpaid debt.
Besides that, a trust fund can save your beneficiaries the trouble of going through probate, which can often complicate things when distributing your assets. Leaving behind a predetermined set of instructions with someone like Angelique Friend can save everyone’s time and energy.
The last reason to choose trust funds is saving on inheritance tax which can eat up a significant proportion of the grantor’s assets. Using trust funds can save your beneficiaries a lot of inheritance tax for good.
Funding a trust does not always have to be complex, especially when you have a reliable and competent probator and trustee. So make sure you check out some of the recent Angelique Friend reviews and make an informed decision about choosing her for funding your trust.