Trustworthy: The Do’s and Don’ts of Trust Creation

The idea that your hard work could continue to benefit your family after you pass is a time honored and noble tradition for many families. Trusts enable you to pass assets on to children and grandchildren. Contrary to popular belief, trusts are not just tools for the über rich either—anyone can create a trust for their family. Our experts at Apex are extremely familiar with this and other “tips” to ensure that the assets you leave behind are well managed and maintained. Using a trust helps prevent mismanagement of funds by exercising a degree of control over how assets are distributed, when, and under what circumstances.

Distribution options are the most effective tool for controlling how the money is managed. Age-based payouts are common, ensuring that the inheritor does not get all the money at once. In the event they make irresponsible financial choices, spread-out distributions can help insure their inheritance does not quickly disappear. Sometimes, special situations necessitate more elaborate and specific terms for payouts. For example, Ian Weinberg, a CEO of a Family Wealth Management group, “had a client couple who planned to leave money outright to their children. However, after problems arose with one child, they created a trust that states certain conditions that must be met in order for the child to receive the inheritance.”

Special circumstances necessitate special expertise. Apex financial advisors pride themselves on a reputation of preserving your family’s wealth, including trust creation and maintenance. Whether the issue is related to timing, health, education, or employment, our advisors can help you find the right fit for your trust and family. The goal of any trust is to ensure that it remains in effect long-term. The first step to preserving that longevity is when the trust is written. For more examples of trust issues, continue reading the article listed below. If you want to insure your asset’s protection, contact an advisor at Apex Financial today to discuss your trust creation process!