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Day 17: How to Set Up a Trust with Limited Resources

Writer's picture: John DebellotteJohn Debellotte

Updated: Jan 19

Many people believe trusts are only for the wealthy. The truth is, even with modest assets, setting up a trust can secure your family's financial future and create a pathway to generational wealth.


Why Set Up a Trust with Limited Resources?

A trust is not just for those with millions. It can:

  • Protect small but valuable assets (like property, savings, or investments).

  • Ensure smooth asset transfer to heirs without probate.

  • Create a framework for gradual wealth accumulation over time.

  • Provide tax benefits and asset protection, even for modest estates.

Key Point: A small trust today can grow significantly over decades, providing lasting value for future generations.


Benefits of a Trust (Even with Modest Assets)

  • Avoids Probate: Assets transfer directly to beneficiaries without legal delays.

  • Asset Growth: Investments in the trust grow over time.

  • Controlled Distributions: You dictate when and how beneficiaries receive funds.

  • Peace of Mind: Your assets are managed and distributed according to your wishes.


Real-Life Example: The Evans Family Trust

  • Assets: $10,000 in savings and a family home.

  • Action: They placed their home and savings into a trust.

  • Result: Over 20 years, the home appreciated significantly. The trust now holds $250,000 in value, ready to pass to their children without probate.


Simple Steps to Set Up a Trust with Limited Resources

Step 1: Identify Assets to Place in the Trust

  • Real estate (even small properties).

  • Savings or retirement accounts.

  • Stocks or small investments.

  • Family heirlooms or valuable items.

Step 2: Choose the Type of Trust

  • Revocable Living Trust: Allows you to manage and adjust assets during your lifetime.

  • Irrevocable Trust: Protects assets from creditors and offers tax benefits, though it cannot be changed easily.

Step 3: Appoint a Trustee

  • Consider appointing yourself initially and naming a successor (family member or professional trustee).

Step 4: Set Distribution Terms

  • Define how and when assets are distributed (e.g., upon reaching a certain age, educational milestones).

Step 5: Work with DeBellotte Global Ltd.

  • Our experts help families of all sizes create trusts that grow and protect assets.


Affordable Assets to Start With

  1. Land or Property Even small parcels appreciate over time and can become valuable assets for future generations.

  2. Savings or Bonds Place modest savings in a trust and gradually add to it through regular contributions.

  3. Small Business Ownership Family businesses can be placed in a trust to ensure continuity and protect the assets.

  4. Insurance Policies A life insurance policy with the trust as the beneficiary secures financial support for heirs.


Growth Strategies for a Modest Trust

  • Reinvest Earnings: Use trust funds to invest in bonds, real estate, or stocks.

  • Leverage Compound Interest: Regular contributions lead to exponential growth.

  • Participate in Crowdfunding or Group Investments: Pool resources with family members to invest in larger projects.


Real-Life Success: The Bennett Family

  • Initial Asset: $5,000 in savings.

  • Action: They contributed $100 monthly to a trust, investing in dividend stocks.

  • Outcome: Over 15 years, their trust grew to $50,000, which helped fund their child's education.


Why Choose DeBellotte Global Ltd.?

  • Tailored Trust Solutions: We help families establish trusts that fit their budget and goals.

  • Global Wealth Management: Offshore trusts offer tax benefits and asset protection, even for modest estates.

  • Long-Term Growth Focus: Our expertise ensures small trusts develop into significant family wealth.


Your Action Item for Today

  • List Your Assets: Identify small assets that could be placed in a trust.

  • Contact DeBellotte Global Ltd.: Let us help you start a trust, no matter your starting point.

  • Create a Contribution Plan: Even $50 per month can lead to substantial growth over time.


Final Thoughts

Trusts are powerful tools for wealth-building, no matter the size of your initial assets. By starting small and thinking long-term, your family can establish a secure foundation for future generations.

Stay tuned for Day 18, where we’ll discuss how trusts protect your family from tax liabilities and ensure financial stability.


Join the Conversation:Have you considered setting up a trust with modest assets? Share your thoughts and experiences below!

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