As a caring parent or grandparent, you want to leave assets behind for your loved ones. Some of these heirs may include those who are in their twenties or even younger.
Young people are not always wise at handling money. You want to make sure they do not waste what you worked so hard to save.
Trusts are an excellent way to control your assets
If you want to control the assets that you leave behind, then putting those funds in a trust is an excellent option. If you have children or grandchildren who are underage, consider an educational trust.
An educational trust is beneficial
Tuition costs keep going up, according to the National Center for Education Statistics. Tuition increased by 13 percent at public colleges and 18 percent at private institutions. Creating an educational trust ensures your children or grandchildren get a college education.
With an educational trust, you specify that the funds you leave behind are for educational costs. When creating such a trust, you decide who is in control of the funds and who are the beneficiaries. You can also specify what type of education the fund will pay for.
If you have more than one beneficiary
You may want to have more than one beneficiary. You can either set up a trust for each one or include all beneficiaries in one trust. You can either leave the money in a pot and give the trustee flexibility on who gets what. Or you can give each beneficiary a set percentage. No matter what you decide, you should be specific in the trust document.