Creating a Trust can get complicated, so we put together these five tips to protect your money as if it were, um, gold.
1. It’s All About [Keeping] The Benjamins
People set up Trusts to minimize estate taxes, avoid probate court, legally protect money from creditors, and seamlessly transfer money and property to heirs.
2. It Takes Three To Tango
3. Report To The Principal
All the property and assets you put in a Trust, including money (or fish?), is called a Principal.
4. Trusts Are Either Living Or Dead
Trusts are obviously set up when you're alive, but a Living Trust kicks in immediately upon creation; a Testamentary Trust, which is usually part of a person's Will, goes into effect after you're gone. There are also Revocable and Irrevocable Trusts, but since this is a cheat sheet you'll have to click on those words to learn more.
[Ed. Note: This has nothing to do with the lovely Hawaiian waterfall pictured above, but since we packed so much info into this blurb we figured you deserved a rainbow. You could also use a puppy, right? Coming right up!]
5. Don’t Be A Hero, Ask For Help When You Need It
Even the smartest and savviest financial minds can get tripped up by Trusts, especially since they vary from state-to-state, so it’s best to consult an attorney. Anything that requires you to set up a bank account as if its a corporation requires extra care and attention to detail. [Helpful Resource: Online Legal Services]
Deep Dive: All You Need To Know About Trusts