Wealth Habits

CHAPTER 14Trusts Aren’t Just for the Rich Kids Anymore

“Trusts are generally thought of only for the rich; however, they are very customizable vehicles that anyone can use depending on their goals.”

When you hear the word “trust,” you might think of wealthy parents giving their spoiled kids a big chunk of cash and a house in Dorado on their 18th birthday. But trusts aren’t just for the rich.

A trust is an estate planning tool that can serve more purposes than most realize. Anyone can use them to ensure their assets are passed down as they wish, to friends, family, or a charity.

I’m going to unpack this and boil it all down in this chapter.

You may have no need for this right now, but as you practice the wealth habits in this book and get on the right path to growing your wealth—I want you to bookmark this section on trusts because you may need it later.

Trusts really fall into two categories: irrevocable or revocable.

What’s the difference between them?

• A revocable trust is a living trust where you still have control of your assets.
• An irrevocable trust is one where you install a trustee who controls the assets, and now you no longer have control.

Generally speaking, if you are not already wealthy, you likely won’t want an irrevocable trust.

But even if you’re not there right now, I know you’re on your way. So let’s review them both.

There are three roles (people) involved in trusts:

1. The grantor: the person who creates the trust and puts the assets (life insurance policies, ...