Don’t Put Your Trust In These Prolific Trust Fund Myths

Are you planning to leave your children money in a trust they can access when you pass away? Without question, working with a trust fund lawyer to secure the money for your child is a good move. This allows you to ensure your young heirs have access to their inheritance when they reach an age when they need it. However, many individuals avoid ever setting up a trust fund for their heirs due to several prevailing myths. Take a look at a few myths that trust fund lawyers often have to work to dispel with prospective clients.

Myth: Trusts are only a good option for people with a lot of wealth

Trusts are a good move for anyone who wants to protect the assets of their estate to ensure the right heirs eventually benefit from those assets. You do not necessarily need to have a lot of money to have this desire to make sure your wishes are carried out. Therefore, creating a trust is logical for people with any tangible or monetary asset they wish to be handled in a certain way. 

Myth: A trust ensures creditors can't take what you leave behind

Unfortunately, the idea that a trust is all-protective is also a myth. There are many situations in which a trust may be considered part of your entire estate when it comes time to settle debts with creditors once you are gone. The best way to protect these assets from creditors is to work directly with an appointed trustee or trust fund law firm to ensure certain assets are protected. 

Myth: Creating a trust fund is more costly than it is worth

Ensuring your assets are allocated to the right individuals when you are gone is incredibly valuable. Therefore, whatever cost is typically well worth the peace of mind, However, creating a trust fund is also not as expensive as most people expect. A trust fund lawyer generally charges a set rate for creating the trust, and there may be small ongoing management fees. 

Myth: A trust fund can only be comprised of money

A trust can be comprised of just about any asset you own. If you want your real estate to be part of a trust, your vehicles, or even your digital assets, these items are absolutely possible to include. It should be noted, however, that a trust can be more complicated to manage if it includes something other than money. 

Reach out to a trust fund law firm like The Ritchie Law Group to learn more.