When you have a sizable estate to leave to your heirs, you want to make sure that the assets and money are doled out responsibly. You do not want your survivors to take their share of the funds that you leave for them and blow it on frivolous purchases. You prefer that the money continue to grow and work for them for years.
Rather than give out your inheritances in lump sum payments, you could instead have it set up in a trust fund for each heir. You can accomplish this by working with professional trust services that can help you plan out and divide up your estate.
When you use trust services to finalize your estate, you can take the opportunity to have the money for your heirs put into interest-bearing accounts. During the time that the money is in the trust, it will continue to accrue interest. The principle balance on the account will grow even while the fund disburses payments to the account’s recipient.
An interest-bearing trust can protect the money that you leave behind and ensure that it does not run out prematurely. If the heir avoids withdrawing on principle, he or she can continue to receive payments from the interest each month.
Another reason to put the money that you are leaving behind in trusts involves saving it until your heirs reach maturity. You do not want to give the money to them if they are underage. You would prefer that they reach at least 18 years of age or older before they can receive the funds.
You can find out more about setting up trusts for your survivors online. Contact Westwood Holdings Group, Inc. from Dallas to request more information or to schedule a consultation with the services.
Be the first to like.