At this time of year, families all over the world are engaged in giving gifts to their loved ones, as an expression of their love and appreciation. As parents, we look for the best gifts for our children, and children can't wait to wake up Christmas morning and open presents left under the Christmas Tree. However, as you already know, some of the best gifts (and things in life), can't be found in a store.
This Christmas, give your children the gift of a foundation of financial security; consider establishing a wealth creation trust. Now, I know I almost lost some of you with the inclusion of the word “wealth” in the last sentence, but I assure you, you don't have to be rich to utilize this amazing tool. The “wealth” is accumulated during childhood (you can start at birth), from cash gifts from birthdays, holidays, graduation, etc., and invested on behalf of the child.
Start by having the Trust created and designating a Trustee, then informing family members that all gifts for the child should be made out to the Trustee of the wealth creation trust for the benefit of the child. Be sure to inform your child that the purpose of the Trust is to manage and invest existing assets so wealth can be created from one generation to the next, rather than squandered or wasted.
With this unique gift, our hopes and wishes for a more secure financial future for our children may start to materialize. If you would like to learn more about how to establish a wealth creation trust contact my office to schedule your free Estate Planning Strategy Session.