In the Virgin Islands, trust funds are invaluable options for sharing wealth with an heir. Estate owners set up the trust funds in estate planning practices for protecting their assets. Once the funds are deposited into the trust funds, the probate court is no longer a risk to the assets. A financial planner helps estate owners set up trust funds and secure the financial assets.
Setting Up Individual Trust Funds
The estate owner chooses what family members require a trust fund. Initially, trust funds are created for minor children for future financial support. However, the estate owner is within their rights to create a trust fund for anyone. It is necessary for the estate owner to use the heir’s full legal name and Social Security number when creating a trust fund.
A Plan for Contributing to the Trust Funds
The frequency at which funds are deposited into the trust fund is up to the estate owner completely. They can set up an automatic payment each pay period for contributions, or the estate owner sends a lump sum into the account when they set it up.
Stipulations for Defining How the Trust Funds are Used
Stipulations apply to trust funds and define how the money is used by the heir. Parents use trust funds for paying for college tuition and providing financial support. Stipulations prevent the heir from overspending and using the funds for frivolous purposes. Estate owners apply stipulations to prevent the heir from accessing it before the preferred age, too.
How Often are Disbursements Available?
Disbursements are scheduled according to the estate owner’s preferences. The owner can spread the disbursements out over a few years if they prefer. This step lowers the chances of the heir becoming broke or facing excessive financial hardships by spending all their inheritance in one year.
In the Virgin Islands, trust funds help estate owners secure monetary assets for their families. The funds don’t present any limitations for how much the estate owner can contribute into the account. A careful plan allows them to distribute their wealth without major risks. Estate owners who want to learn more about setting up a trust fund contact Cane Bay Partners right now.