Diversified Asset Management, Inc. - 2020 2nd Quarter Newsletter
A Primer on Setting Up a Trust Fund
Trust funds used to be the realm of the wealthy, providing a tool to pass money to heirs and charities. Nowadays, though, they are becoming a means for more people to engage in smart estate planning.
Trusts are legal arrangements allowing you to put assets into accounts that benefit another person or an organization, like a charity or college. They are often complicated and require a lawyer to put together – although there are online alternatives if you want to attempt to do it yourself.
The basic idea is to control who gets your assets, either when you're alive or afterward. A trust can help you lower estate taxes and avoid probate, the often- arduous legal procedure that proves a will is valid.
First Steps. As you set up a trust, you need to settle a few key questions:
· What assets go into the trust: stocks, bonds, mutual funds, cash or property?
· Who are the beneficiaries, meaning the people who receive the trust's benefits?
· Who will be the trustee, the person who manages the assets and oversees the trust? The best thing is to appoint someone you know, who also is familiar with your financial situation and your beneficiaries. Plus, this person should be financially astute, and knowledgeable about taxes and investing.
To find out more, read the full newsletter by clicking the link below:
Diversified Asset Management, Inc. - 2020 2nd Quarter Newsletter
Robert J. Pyle, CFP®, CFA is president of Diversified Asset Management, Inc. (DAMI). DAMI is licensed as an investment adviser with the State of Colorado Division of Securities, and its investment advisory representatives are licensed by the State of Colorado. DAMI will only transact business in other states to the extent DAMI has made the requisite notice filings or obtained the necessary licensing in such state. No follow up or individualized responses to persons in other jurisdictions that involve either rendering or attempting to render personalized investment advice for compensation will be made absent compliance with applicable legal requirements, or an applicable exemption or exclusion. It does not constitute investment or tax advice. To contact Robert, call 303-440-2906 or e-mail info@diversifiedassetmanagement.com.
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