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To leave money or not to leave money… that is the big question

To leave money or not to leave money that is the big question

To leave money or not to leave money… that is the big question. When we love someone, we want to make sure that they are taken care of – and that oftentimes includes seeing to it that they don’t have to struggle financially. But if you leave money to a relative or other loved one, it is important that you have a good, solid strategy in place first.

Whether an inheritance from you helps a loved one to pay their day-to-day living expenses, pay for a wedding, or fund a college education, setting up a trust fund can help you to better ensure that it is not squandered away.

How a Trust Fund Can Work for You…and Those You Love

Trust funds are special types of legal entities that can hold assets for the benefit of others. But not all trust funds are exactly the same. There are actually many different types of trust fund provisions that can direct the way they work.

Typically, though, there are three distinct parties that are involved in a trust fund. These include the:

  • Grantor – The grantor is the individual or entity that establishes the trust fund. In addition, the grantor donates the assets, and also sets out the terms upon which the trust fund will be managed.
  • Trustee – The trustee is responsible for ensuring that the trust fund maintains the rules and duties that are set forth by the grantor. A trustee can be an individual or an entity, such as a bank or trust company. In some cases, the trustee will actually manage the trust, and in other instances, the trustee will appoint another entity – such as an investment advisor – to do so.
  • Beneficiary (or Beneficiaries) – The beneficiary (or beneficiaries) are the person(s) for whom the trust fund is established. Even though the assets in the trust do not technically belong to the beneficiary(ies), they are managed in a way that benefits them, based on the rules that have been laid out by the grantor.

Staying in Control – From this World and the Next

Even when you are no longer here on this earth, there are ways that you can stay in control of your money and make sure that those you care about and want to support do not let your hard-earned assets disappear.

One of the best ways to ensure that you can leave something for your loved ones is to have a reliable, lifetime income set up. That way, you are assured that you have a certain amount of incoming cash flow coming in – and any amount that is over and above your living expenses could be earmarked to go into the trust fund.

If you’d like more information on how to secure an ongoing income for life, we can help. At Annuity Gator, our mission is to educate consumers and financial professionals on how to set up reliable income in retirement using annuities.

So, if you have questions or you’d like to learn more about how to set up a guaranteed lifetime income stream, just give us a call at (888) 440-2468 or contact us via email through our secure online contact form here. We look forward to hearing from you.

To leave money or not to leave money that is the big question

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