How to Set Up a Trust Fund in 2022 [Step-by-Step] - YouTube

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