A children trust fund is a savings and investment account for children. It actually belongs to the child and cannot be touched by anyone until the child turns eighteen or 21 years of age, depending on country or state laws. In the past only the really wealthy people could have children trust funds, and just as now days it was primarily a prevention against high death taxes but it also assures a child or a grandchild from many other unforeseen miss happening including bankruptcy and death.
As mentioned before the things have changed regarding the general wealth of the population, a home owner couldn’t set up a children trust fund a hundred years ago but today his or her great grandchildren can quite easily seat up a children trust fund on the same property their ancestor’s couldn’t. In other words a house in downtown New York or San Francisco wasn’t worth much back in 1800,s but can be worth more then a million today.
Ordinary people are not only becoming millionaires through increased property value, the retirement plans of many companies accumulate considerable sums through the stock market so if you want to make a children trust fund for your grandchildren through stock market-driven accumulations in your company’s retirement plans, it is a good option but it will always be subject to the changes in the stock market.
Of course a home or any kind of real estate is a much better basis for a children trust fund since a house is always a house, and it is not subject to any stock markets, economic crisis and/or recessions. After a property of course the best basis for as children trust fund is cash. If you have managed to put aside some considerable savings and want to assure your children’s future with that, a children trust fund is an excellent option. As a matter of fact you can start a children trust fund with even a smaller sum so you can provide for their education.
It is not uncommon that parents start a children trust fund in order to finance a good university in the future. Technically, if your child was born this year and you would like to see it in Yale or Harvard in 18 years, it would be wise to start a children trust fund this Monday. Never mind how rich you are, children trust fund is always a good precaution because there are so many things we cannot foresee and we must make sure that our children will be taken care of in the future. A children trust fund can make you sleep a lot easier at night knowing that your children will be at least financially secure.