Setting up a trust fund in Alabama can help preserve your assets in a number of situations. The assets protected by trust funds can include those you intend for charities as well as ones meant to support your retirement funds and more. The federal tax code and state legislation make it possible to establish “special needs” trusts and ABLE accounts for the benefit of people with disabilities.
Types of trust funds
There are many kinds of trusts to consider, and some of the most prevalent include revocable trusts, irrevocable trusts, and asset protection trusts. Furthermore, these trusts provide lasting advantages that can bolster an estate strategy and effectively safeguard assets.
Unlike revocable trusts, in which the grantor can change their minds and end the trust at any time, irrevocable trusts are permanent and the grantor loses all control over the trust’s assets and income.
What assets to include in a trust
There are a plethora of assets you can include in a trust fund, such as:
- Bond funds
- Tangible private possessions
- Limited liability companies
- Rental properties
- Checking accounts
- Insurance plans
- Personal and vacation real estate
- Electronic currencies
When to set up a trust fund
The “best time” to establish a living trust is not always tied to your physical age. Instead, trust funds should be considered by those who have valuable assets, regardless of age.
Consider establishing a trust if your net worth is over $100,000 or if you own significant real estate. A trust is also of immense value if you want to leave extremely detailed instructions for how and when you want your inheritance dispersed to your heirs after your death.
Set up a trust fund today
Part of living consists of choosing what happens to your assets here on earth once you pass away. If you’re wondering how best to protect your assets, a trust fund can be of the utmost help.