A trust fund is a vehicle you can use during your life. You can do an irrevocable trust. Then it’s solid. It’s active, once you fund it. Or you can have a revocable or a trust you fund on your death. This trust, then, will benefit either a foundation or benefit your heirs, your children, your grandchildren, nieces or nephews, whoever you earmark for it. One of the most important things about a trust is that it bypasses probate. If you set up a trust it’s not disclosed. If you’re worried about people knowing where a certain amount of assets are going to go later on, if you have it in your will it will be probated and it will be a public record. Everybody will be able to see it.
If you do it in a trust, it bypasses probate. It’s sealed. Nobody knows who’s getting what and how much is in there.
LISTEN TO TRUST FUND SEGMENT (11 minutes)
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“A 529 plan is a college savings plan that allows individuals to save for college on a tax-advantaged basis. Every state offers at least one 529 plan. Before buying a 529 plan, you should inquire about the particular plan and its fees and expenses. You should also consider that certain states offer tax benefits and fee savings to in-state residents. Whether a state tax deduction and/or application fee savings are available depends on your state of residence. For tax advice, consult your tax professional. Non-qualifying distribution earnings are taxable and subject to a 10% tax penalty. Not associated with or endorsed by the Social Security Administration or any other government agency.”