In most elements of estate planning, much of the plans in place focus on what to do with property and other major assets once the person has passed away. What makes a Phoenix, AZ family trust different is that the focus is both on the assets while the person is still living and the management of them, as well as what happens to said assets upon the person(s) passing. However, another common use for this kind of trust account is to pay for college, which is a huge cost for parents of college-aged children.
A Phoenix, AZ family trust allows parents to transfer assets to the trust without having to pay at the tax bracket of the adult. If the confines of the trust are to be distributed to the children at some point, then the payments on the trust are taxed at a child’s rate. There are virtually unlimited investment options with a Phoenix family trust and changes can be made at any point.
The major benefit of this kind of account for this specific purpose is that the assets and monies put into it are protected from creditors should the family’s financial situation change at some point. Moreover, the parents putting together the family trust can entrust the entire thing to their child(ren) if they so choose, making it the perfect vehicle both for college-related costs and in long term estate planning.
There are some drawbacks to doing this, including the fact that the financial assets have to be in place initially to even be able to set up such this account. Moreover, once it is established, it cannot be resolved, only changed. This is important to note as some people may think that they can later move assets out of the trust; and this is not the case. If this is part of your future planning, then you might consider another investment strategy to save to pay for your child’s college education. However, no matter what, a family trust is still an important estate planning tool.
Despite those drawbacks, the assets far outweigh them in terms of setting up a Phoenix, AZ family trust for college expenses. And as college costs continue to skyrocket, this is a great way to ensure that you are able to put all of your children through school no matter what your family’s financial situation may be at the time.
“by Kandice Linwright” at Google
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