How does it benefit you? For instance if you inherited a large amount of money or attained a large amount of money, how would you benefit from a trust account?
2007-08-15 17:01:53 · 6 answers · asked by #1 Lady 1 in Business & Finance ➔ Personal Finance
This can help better explain what a trust (account) is.
http://www.plannerconnect.com/estate-planning-trusts.html
2007-08-16 06:09:39 · answer #1 · answered by homerocks7001 2 · 0⤊ 0⤋
A trust account is an account that is set aside until a later time (politicians will often put there holdings and investments in a trust -- they benefit but they eliminate the perception of conflict of interest in making decisions). At that later time, the entire trust becomes available or it becomes available installments. It might have conditions and/or it might have an administrator that writes the checks. The benefit is that someone watches over the money, ensures that it is invested wisely until you are able to access the money.
2007-08-15 17:11:54 · answer #2 · answered by lakewood_lefty 2 · 0⤊ 0⤋
A trust account is something set up for you my another individual only to be received when you reach a certain age the benefit of it is that you are not taxed on it until you reach that age and take the money out of the account.
2007-08-15 17:07:21 · answer #3 · answered by COLLEEN M 2 · 0⤊ 0⤋
We put the money in trust to have someone else watch out for the best interest of the account and the person who it is in trust for. For a child or grandchild who has no concept of how fast you can run through a couple of million dollars it's a good plan. For an older person whose memory may be slipping it is a safe keeping to keep them from playing too many BINGO games. Make sense? Good Luck it is a kindness that is intended. So if someone set one up for you, consider yourself well and truly loved they were trying to protect you! and your best interests until you could take care of your own.
2007-08-15 17:07:39 · answer #4 · answered by helprhome 5 · 0⤊ 0⤋
If the money was in a trust when it came to you there will be no inheritance taxes. And the estate does not have to go through probate.
If you then set up a new trust for your heirs they would keep all of your real estate and funds in the trust. Then when you die, they too will not pay inheritance taxes or your estate go through probate.
2007-08-15 17:08:47 · answer #5 · answered by ♥♥The Queen Has Spoken♥♥ 7 · 1⤊ 0⤋
That would take a large answer, he is basically everything you might want to know. Oh and a lot of people will give you the thing about age, don't listen to them, theres a lot more to it than that...
http://en.wikipedia.org/wiki/Trust_fund
2007-08-15 17:07:31 · answer #6 · answered by Rig 2 · 1⤊ 0⤋