Getting a trust fund is essential especially among parents who want to ensure the future of their children. A trust fund is basically handing out of assets, usually monetary, to their beneficiaries for the purpose of financial security or financial freedom. The grantor pays an amount depending on the trust fund to any trust fund companies.
Living and testamentary are the two types of trust funds. They differ on their terms as well as the time when they can be established. Living trust funds are flexible in terms compared to the testamentary trust fund. A living trust fund should be made and completed while the grantor is alive. Because it has easier terms, living trusts are always the choice of many. Testamentary trusts are made in a will. The terms are made once the grantor is dead and it would base on his or her last will. There will be group of people or firm to facilitate and carry out what is ordered in the testamentary trust.
Drafting trust funds may be quite hard and would often differ from one state to another. That is why it is always necessary to consult a legal counsel before establishing a trust fund. The draft would vary depending on the needs of the benefactor and the grantor. There are different drafts established for different purposes, such as personal, charity donations, and many others.
There are a lot of reasons why a person would want to establish a trust fund. The first and primary reason is for the security of the future for the benefactors. This is often true among parents. Some parents want to secure the education of their kids while others establish trust funds for their children who have special needs. Others just want to secure their assets and properties in a safer way since trusts are private and not subject to any public proceedings.