If you’re looking to give a gift to your grandchildren, setting up a trust is a wise and forward-thinking option. Not only will you be helping them, but this form of estate planning will also reduce the size of your estate and the tax burden that goes with it. When you’re looking to create a trust, there are a few things you should remember. 

Choosing a Trustee

The first thing you’ll need to do is decide who will be managing the funds. You can set yourself up to manage them for the remainder of your life, but after you pass the responsibility will fall upon a custodian and trustee you decided on. This is an integral part of estate planning, as it helps you ensure the money will be managed by a person you’ve personally selected for the task.

How to Distribute the Funds

When you’re thinking about how your trust’s funds will be distributed, you should consider the spending habits of the people who will receive it. If they’re big spenders who are sometimes a little irresponsible with money, you may want to give the money in smaller amounts at first, then make them grow larger over time. You can also set funds aside for specific ends, such as funding your grandchildren’s college education.

Why You Need a Professional for the Documents

Whether you’re having the documents drafted or getting them reviewed after you draft them yourself, it is important to have an expert look over them. Those who deal with matters such as insurance and estate planning can ensure everything is set up so there’s no confusion about how and to whom the funds are to be distributed.

For important estate planning decisions that impact your life and the lives of those around you, it helps to talk with a skilled insurance agent. Jonathan Caudill, Alan Wilson, Jay Lee, and Eric Michaels of Farm Bureau of Mebane-Caudill Agency are here to help in Orange and Alamance County, NC. Selected as the Best Insurance Company in Mebane by the Mebane Enterprise in 2018, this expert agency is ready to go to work for you. Get a quote online today or speak to an agent by calling (919) 563-3276.