why did the young boy have trust issues growing up because his father didn't leave him one
what okay let's talk about it how to set up a trust fund is something that is actually
very easy and frankly something that i think everyone should be doing but there are some key
things that you need to make sure you include so that you cover as many bases as you possibly can
when you're setting up a trust fund so in this video i'm going to give you
everything that i think you need to know when it comes to establishing a trust fund stay tuned
all right so let's get started by answering the question why should you start a trust fund so as
the great benjamin franklin once said the only things that are certain in life are death and
taxes and i know i know right like death can be a sour subject to talk about but it's necessary
today to really bring home the message of why and how to establish a trust fund because some people
think that only rich people and wealthy people are the ones that need to set up a trust fund and it's
not something they think they need to worry about but listen i don't care whether or not you have a
million dollars or ten thousand dollars okay when you die you can't take it with you and someone's
actually going to want your money or your assets when you pass away so you want to leave this world
as organized and as clean as possible because if you don't then you are risking your family
and your friends fighting over you and your assets especially during an intense time where
they are already grieving or they should be celebrating your life so i don't know about you
but i would like to be the reason that my family and my friends become closer together instead of
them moving further apart especially in a time period of my death okay so number two what is
a trust fund so you probably guessed it by now but a trust fund is basically a document that decides
what happens to your assets and your personal property after you pass away so what i want
you to do is to really think about everything that you own especially for the people who are
already thinking like uh i don't need a trust fund okay what happens to your car what happens
to the equity in your home okay what happens to the bank accounts your retirement accounts
where you have money in heck what even happens to your devices like your computers your tablets your
iphones anything else you have you know i don't know but basically when you set up a revocable
living trust you get to decide what happens to your property when you are no longer here okay
you can give your property to your children you can donate it to a non-profit you can give it to a
close friend or a mentor that really impacted your life a cousin a nephew whoever you want to the
point is you get to decide and you should now on the opposite side right like what happens if you
don't have a trust fund or a will well the state where you reside gets to decide how your property
is distributed so essentially you give all the control to the state and in most cases your assets
are distributed to your heirs so your spouse your children parents siblings nieces nephews etc
now of course this is a little bit problematic for example maybe your spouse think they deserve more
than your close brother and that of course can drive a rift between your loved ones so
with that we want to make things very clear right we don't want to leave the decision to the state
and have heated debates happen amongst our family and friends okay so number three let's talk about
what terms can you put into your trust fund but before i do if you're new to our channel welcome
i'm sean with life accounting the accounting company that saves people from high taxes and
low profits of course today we're not talking about how to save on taxes or increase profits
but we are teaching a very valuable subject to our audience so if you're enjoying this video so far
please support us by hitting the like button for the youtube algorithm it really helps this video
reach more people like you who want to learn how to establish a trust fund and it just gives us the
momentum to continue to create great content for youtube so have you done it yet yes okay
thank you so much now let's go ahead and get into step number three what terms can you put into your
trust fund so i'm gonna make this very simple you get to decide the terms of your revocable
living trust so what does that mean well first off you get to decide what the trust is a beneficiary
of for example if you own a rental property and your rental property is inside of an llc
well you can make your trust a beneficiary of that llc okay but but what else right like
so you can make your trust fund a beneficiary of your primary home your investment accounts such
as your stocks your gold your crypto if you're into that okay your revocable living trust can
be a beneficiary of your businesses right or any of the side hustles or whatever else that you
want okay so that's the first step is to decide what your trust is a beneficiary of and that is
essentially the process of funding your trust fund hey sean look i can have a trust fund too
okay wait a second not that kind of fun but you get the point right like you get to decide what
assets you want the trust fund to be a beneficiary of now after that as we talked about already you
get to decide okay who do you want the assets to go to now the cool thing is is that you can
establish under what terms someone gets your assets okay and this is my favorite part right
like you get to be very creative because here's the thing you may want your son or your daughter
to inherit your business but you don't want them to get it at 19 years old right like they may make
poor financial decisions and destroy that business so with a revocable living trust you can say okay
here are the terms and conditions under which you will inherit this business so for example you
could say like you have to be at least 30 years old you must have went to college and earned your
bachelor's degree or higher and then number three you have to have proof that you have watched 30
life accounting videos from start to finish right like okay obviously that's just an example and i'm
making up these terms but the key takeaway here is that you get to decide so as another example let's
say you have 100 000 worth of stocks and you want to give that away to your beneficiaries one day
so the conditions under which your beneficiary gets your stock can be something like you must
be at least 18 years old okay you must pass four randomized drug tests from this specific company
in this case this can help you make sure that whoever's getting the money is actually
responsible with it and you can say something like you must complete a year's worth of therapy and
you can only use the money to start a business or to go to college right and these terms may
give you extra confidence that you're giving your assets your stocks to your loved one and they're
also going to be responsible and carry on your legacy alright so so again you get to decide what
terms and conditions that your assets are passed on now the last thing you need to know about point
number four is how to create the legal document so the hard part is making some of the decisions in
step number three right which again is deciding which assets to put into your trust fund or the
beneficiary of those funds and then what are the terms under which those assets are distributed now
the next thing of course is to tie all of this together by creating a legally binding document
for your trust fund now when it comes to creating this document you have two options now of course
you can do it yourself or you can hire an expert like an attorney the pros and the cons of hiring
an expert or doing it yourself are pretty obvious right it's all about whether or not you want to
save yourself some money or save yourself some time of course if you work with an attorney they
may be able to give you some tips and tricks that you won't be aware of even after hours of research
but you can still do it yourself using a website with templates like law depot.com or nolo.com
right now moving right along to number five appoint a trustee so the trustee is the person
who will manage the trust now as long as you are alive you will be the trustee however when you die
the trustee is the person that you appoint for transferring the assets to your beneficiary
okay so typically the primary beneficiary like your spouse or the oldest child
may be the trustee and they will continue to manage the trust in your absence making sure
that the beneficiaries comply with all the trust terms and the assets are distributed
properly and the last point is point number six which is to execute the trust now listen
you can do everything that we just mentioned right you can go through steps number one
the number five you can even create the legal document but your trust is not in effect until it
is executed and to properly execute the trust you must sign it in front of a public notary and the
notary should be also able to stamp it or sign off on the trust as well now while you're at it you
should also sign the trust in front of a witness and this person cannot be a beneficiary all
right and this is just in case a legal argument arises and they don't have a bias right and then
after that trust is officially executed then bang congratulations you have established a trust fund
now after that or maybe even throughout this video you may be asking yourself what about a will like
do i need a will or a trust fund and there are some big differences between a will and a trust
but one thing that they both have in common is they usually take effect after you die and help
ensure your assets and possessions end up going where you want them to go so if you want to see me
make a in-depth video about trust funds versus a will please tell me in the comments section below
but that is it for now as always thank you so so much for watching we have two more videos
coming up next so make sure you check those out if you haven't already and i'll see you over there