Understanding Trust Funds
A trust fund is designed to hold and manages assets on someone else's behalf, with the help of a neutral third-party. Trust funds include a grantor, beneficiary, and trustee. The grantor of a trust fund can set terms for the way assets are to be held, gathered, or distributed.
Is a Trust Fund right for you and your investments?
Benefits of Investing Through Trust Funds
Advantages
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Asset protection
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Protecting vulnerable family members
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Equal share of profits to members of trust
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% shares of profits to members
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Tax benefits.
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protecting assets from bankruptcy or business failure
Disadvantages
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Any income earned by the trust that is not distributed is taxed at the top marginal tax rate
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Distributions to minor children are taxed at up to 66%
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The trust cannot allocate tax losses to beneficiaries
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There are costs involved for establishing and maintaining the trust
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Running the trust can become particularly difficult when family disputes arise.
Want to set up a Trust that you can buy property with? Click the following links to contact our specialists
Sapient Financial
