Once upon a time trust funds were for the independently wealthy among us. Those who had large assets and money they wanted to protect. But today trust funds are available to the common everyday man or woman who may simply want to protect their home and family against financial hardship.

Trust funds are set up by individuals or a group of individuals, such as a man and wife. The person setting up the trust is called the grantor, settlor or donor. These terms all mean the same thing.

The grantor creates a trust with a specific person, or group, in mind. For example, parents might set up a trust fund for the children when they are older. These are the beneficiaries to the trust fund.

A trust is a legal creation that puts money or assets aside for a specific reason. The trust fund is then overseen by a trustee. Someone put in charge of the trust fund to see that everything is done according to the wishes of the grantor. Often times there will be more than one person or a back up in case the trustee dies. A corporation or business can also be put in charge of the trust fund. One offers the personal touch, the other a lesser risk of things being in limbo if the trustee dies.

Protection & Saving

A trust fund can serve a dual purpose that has great benefits. It can provide protection for family assets and money when the grantor dies against taxes and claims. And a trust can provide for the future needs of the grantor or his family or business. By putting money aside in a trust fund you can take care of such things as college, retirement or business expansion down the road.

Tax Benefits

Money or assets put into a trust fund are not subject to estate taxes and may be exempt from other types of taxes as well, depending on the type of trust you have set up. The tax benefits of a trust fund means possibly less out of pocket expenses now and less financial worry upon the grantor’s death.

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