Many people don’t understand exactly what a trust fund can do for their family, especially if they are not exceptionally wealthy. Tim Parker, an author for Investopedia, discuss how the middle-class can benefit from creating a trust fund for their family.

Trust Funds: Not Just for the Uber-Rich

If you’ve heard of trust funds but don’t know what they are or how they work, you’re not alone. Many people know just one key fact about trust funds: They’re set up by the ultra-wealthy as a way to protect passing on significant sums of money to family, friends or entities (charities, for example) after they pass away. Only part of the conventional wisdom is true though. Trust funds are designed to allow a person’s money to continue to be useful well after they pass away, but trusts aren’t useful only for ultra high-net-worth individuals. Middle-class people can use trust funds as well, and setting up one isn’t entirely out of financial reach.
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