The following is my answer to a Quora
question: “What
do I do with a $100,000 trust fund about to be under my control?”
I am assuming that you are young, and are
about to reach the age of majority, and thus able to assume direct control of
the fund, as a beneficiary.
Firstly, get a full accounting of the
fund, so that you understand where the assets are parked.
Secondly, make sure you have solid
financial advise regarding your investment horizon, your financial goals, and
your asset weightage. Depending on your
risk profile, you may consider adjusting these to better suit your goals.
If the fund is doing reasonably well, do
not liquidate it. Trust funds also
function as distinct legal entities that mitigate your taxes, and grants you
protection from creditors and an acrimonious divorce.
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