Posted on November 29, 2023

A Trust account is used in many tax-saving strategies. It's also affordable, and you can open one up no matter how old you are.

Trust accounts are also important for building wealth.

Trust accounts are great because they act as a barrier that protects your passive income-producing assets.

Passive income-producing assets include rentals, investments, retirement accounts, private equity, or affiliate marketing.

To keep things simple, this trust account can also be the primary location where all your income (active and passive) goes.

Another huge benefit of owning a trust account is not having to create a will. When you create a will and decide where all your money will be distributed once you pass away, that's not the end. The truth is, once you do pass away, it's up to the court (some judge you never met) to decide if your will is legit and to release the funds. This means that if the judge decides that your will is fraudulent, they can decide not to release the funds from your account. They can do this because your will is considered a public record. This means anyone can call the County Probate Court and receive information about your will.

On the other hand, trust accounts are private accounts that no court has control over. When you pass away, anyone authorized to have access to the account as a trustee can receive the money, stocks, house, and anything else you put into the trust. They'll be able to receive all of this without getting the court's approval. So not only can a trust account help you save money and protect your assets, but it can also help you manage your money even beyond the grave.