Nations Western Trust funds are a great way to build wealth for future generations, but many new investors tend to shy away from them because they think they are only for the rich. Although trusts have an association with blue blood families and powerful moguls, trust funds can make a lot of sense even if you are a widowed grandmother who just wants to leave €30,000 to a grandchild to help him or her complete his or her education.

A trust fund is a special type of legal entity that holds property for the benefit of another person, group, or organization. There are many different types of trust funds. There are also many different trust fund provisions that change how they work. Generally speaking, there are three parties involved in all trust funds:

Trust funds provide for more control and specificity than a will does. This is because when you die, your will becomes public record and there’s not always a guarantee your wishes will be met. With a trust fund, only the trustees and the beneficiaries know the contents and conditions of the fund. Additionally, certain trust funds can protect your assets from legal action and provide tax benefits.

There are many ways to set up a financially secure future for your loved ones. You could enlist the help of a financial advisor to come up with a comprehensive financial plan. Trust funds are another way to set your children or grandchildren up for future financial success. And they aren’t just for the very wealthy. You can open a trust fund to ensure your loved ones manage and distribute your assets in a specific way, regardless of your net worth.

There are three parties involved in a trust fund: the grantor, the trustee and the beneficiary. The grantor is the person who establishes the trust fund and places his or her assets into the fund. The trustee is the person or institution who holds and manages the assets. Finally, your beneficiary is the person you’ve chosen to receive the fund’s assets.

A common inclusion in a trust fund is a “spendthrift clause.” This prevents a beneficiary from using the trust fund’s assets to pay off their debts. So even if your grandson were to gamble away all his own money and incur a ton of debt, his creditors can’t touch his trust fund. That way, your grandson can still have some backup money to help him get back on his feet.

You’ll find trust funds useful if you want to leave money, property or other assets to someone else and ensure their use in a specific and incontestable way. You can set up a trust to pay out assets at specific times, like annually, for specific events like at graduation, or at a certain age. If you want to make sure your wealth lasts longer, you can choose to have it paid out to your beneficiaries in installments rather than a lump sum. If you want to pay for your grandchildren’s education, you can have it paid out for their tuition only.

Trust funds also combat some of the issues you might face with a will. Unlike a will, trusts are not subject to probate, the legal process that verifies your will. Since the assets in the trust belong to the trust, not the grantor, there’s no need to transfer ownership of those assets upon the grantor’s death. Without probate, trusts also keep your estate dealings private.