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