EDUCATIONAL TRUST FUND – Here are some useful tips on how to set up one to protect wealth and provide for your heirs.
Education has long been recognized as a cornerstone of personal and societal progress. It is the key that unlocks countless opportunities, drives economic growth, and promotes social mobility.
Yet, for many individuals and communities, accessing quality education can be a daunting financial challenge. This is where Education Trust Funds step in, playing an important role in ensuring that education remains accessible and equitable for all.
An educational trust fund, also known as an education trust or scholarship trust fund, is a financial mechanism or account established to support educational endeavors, particularly for individuals or groups who may have difficulty accessing or affording education.
These funds are typically set up by governments, educational institutions, non-profit organizations, private entities, or individuals with the goal of providing financial assistance, scholarships, grants, or other educational resources to deserving students or educational programs.
Trust Funds contribute to enhancing the quality of education by investing in infrastructure, faculty development, and research opportunities. These initiatives create an environment conducive to effective learning.
It can also be mobilized in times of crises, such as natural disasters or pandemics, to ensure the continuity of education and provide relief to affected students and institutions.
Define the Trust’s Purpose
Before starting a Trust Fund for your children, be clear about who it’s for and what it’s meant to do. Decide if it’s for one child or all of them.
Put Money in the Trust
Setting up a Trust is only half the job. After that, you need to put money or assets into it. You can use investments, real estate, or cash to fund the Trust.
Choose Someone to Manage It
Picking the person in charge of the Trust (called the Trustee) is super important. They’ll be responsible for handling the Trust and giving the money or things to the right people.
Make the Trust Legal
Once you’ve figured out who it’s for, how to fund it, and who will run it, you need to make the Trust official.
Put Stuff in the Trust
Remember, the Trust isn’t complete until you’ve put money and things into it. Other stuff like bank accounts or investments will need to be labeled as Trust-owned. This is a simple process you can do with your bank or financial companies.
Individuals can set up their trust funds in trust services of their choice. Here are some of the best living trust services in the Philippines.
- Security Bank