Content

• Steps
• Tips
• Warnings

A trust fund is generally viewed as a way to raise money for the children of wealthy people, but in fact, it can be a useful financial tool at any stage of life. A trust can be a good example of how to set aside and save money for children, or set aside money for loved ones in the event of a family member's death.

Steps

1. 1 Decide which form of trust is right for you. Would you like to create a trust that is effective during the lifetime of the founder and can be accessed during your lifetime? This is a good option if the trust fund is for your children. Or do you want to give preference to a trust that can be accessed after your death? This type of trust fund is used if you want to protect your assets after death, and also, in many cases, to protect money from creditors.
2. 2 Check your country's legislation regarding trust funds. Each country has different laws, you may need to provide a copy of some documents to the government. The best way to find out is to consult with a lawyer.
3. 3 Choose a trustee. A trustee is a person who will manage funds in the most beneficial way for the trustee. It can be someone from the family, you (typical for a lifetime trust), a lawyer or a company.
4. 4 Select the beneficiary or beneficiaries.
5. 5 Determine the amount of payments that the beneficiaries will receive; whether such amount will be paid in a single payment or in stages over an extended period.
6. 6 Contact a lawyer or go online to the Regulatory Office to prepare all the legal documents required to set up a trust.
7. 7 After the legal documents are finalized, deposit the money and / or assets into the trust fund.
8. 8 If your state requires a copy of legal documents, please provide them.

Tips

• There are targeted trusts that can be created to phase out a certain amount of money, to protect money from additional taxes in the event of the death of a spouse, and to make a charitable contribution.
• Select a follow-up trustee by prior arrangement. In the event that you or the trustee cannot fulfill their duties, you will already have a replacement.

Warnings

• A trust fund may not be the best way to achieve a goal. Consult with a lawyer to be completely confident in your choice.
• Make sure to seriously consider the account of the trustee and choose the person in charge of the money. Do not give preference to a person just because you really like him, as he has difficult duties to fulfill. Remember that many trusted people get paid for their services because their work requires a lot of effort.