Setting up a trust for kids is something that more and more Canadians are doing every day. Of course there is some logical reasoning behind this decision. The following benefits often lead to this smart financial move:
Protection from legal issues
Protection from financial issues
The main three benefits of setting up a trust for kids are more than enough reason to seriously consider this option.
Legal or financial issues can always come up. Nobody knows what the future will look like. Therefore, setting up a trust for your kids is a great way to ensure there’ll always be money available for them down the line.
Because of the way a trust is constructed, it’s safeguarded from any legal troubles as well as any financial problems you might encounter yourself. It protects it from gambling it away or using it for certain investment opportunities that are high risk.
You’ll sleep a lot better when you know that your kids are taken care of. No matter what the future holds. They’ll be able to support themselves financially and sometimes even go to college.
And losing less money to taxes is always a bonus.