I wish that financial education was taught in public schools. What is a trust, what are some benefits, and who is it a good option for?
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Trusts can be beneficial to special needs children. It’s not just for the wealthy.
My daughter, who will likely be unable to work as an adult, will inherit my money and house from my will.
That money goes into a trust, and she can take out money in small amounts to pay for utilities, food, transportation, healthcare, a yearly vacation, etc. It’s all clearly documented in the trust.
Meanwhile, she won’t be taxed on that amount. That’s useful since she needs all that money to live on since she can not support herself. And it’s a burden to have her live with my siblings and have them foot the bill entirely. Instead, my sister can be the trustee from a distance.
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