Done the right way, a trust fund can give your heirs advantages in nearly every area of life. If you have substantial assets to leave them, they may even be able to pass some on to the next generation. You can use your wealth to define their lives and help them avoid common pitfalls that their peers face.
For instance, many young people in the United States face a crisis revolving around student loans. College has gotten to be incredibly expensive. They still feel pressure to go to school, and many young teens think they have no choice but to take out the loans.
While they’re in college, it seems fine, but they get out to find that they can’t afford a home, a car or a child. They can’t live the lives they have always envisioned because they seem to be spinning their financial wheels as they try to pay off those loans.
A trust fund does not have to spoil your child. It just gives them more freedom. They do not have to feel concerned about student loan debt or finding a down payment for a home. They can take jobs that they want, not simply jobs that pay the bills. They can start their own businesses and their own families. They can send their kids to college, knowing their own children will have the same advantages.
Of course, all of this does take careful planning. You really need to think about the goal of the trust, what you want to accomplish and all of the options you have.