Is setting up a family trust only available to the wealthy? Our belief at DSK is absolutely not. In fact, using a trust as a vehicle to manage the distribution of your money is an everyday tool that ensures the money you’re setting aside will be used in exactly the way you intended. It gives the management of this money to a third party of your choice, and therefore safeguards the recipient from using it in ways that would not be to their benefit. Let’s use a few common examples to illustrate.
You may have an adult child that you would like to pass money along to, yet you are concerned. They may presently be dealing with any of the following challenges; addiction or addiction recovery, mental illness, lack of financial experience or a history of poor decision making around finances. Or, they may simply be young and it is too early for them to have access to the money in full.
You don’t feel comfortable that the recipient would sucessfully by able to handle an influx of cash at this time. Can you imagine the stressful feeling that this would bring you?
Structuring the transfer of money into a trust, with clear parameters on how or when it is to be distributed, gives you the freedom to provide for family members or others with certainty that the money will be used according to your wishes.