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Paying Down Debt

When I started taking a closer look at my finances, I realized that I had a serious spending problem. It seemed as if I could never keep money in the bank, and I knew that it was all because of my issues with using my credit cards. I was paying more every month in interest than I was on the actual things that I was purchasing, and it was like a bad cycle. I worked hard to pay down the debt, and when I was finally able to do so, it felt as if a load had been lifted off of my shoulders. This blog is all about paying down debt so that you can enjoy your life again.


Setting Up A Trust Fund For Your Kids: 3 Types Of General Powers To Include

While the term "trust fund" often conjures up images of spoiled kids that solely live off of the income provided by the funds, this image is entirely untrue; however, it may be the reason why so many Americans are hesitant to set up trust funds and why only 0.95% of Americans have trust funds from their parent. You should consider setting up a trust fund for your children if you have extra income to spare, and if you would like the money set aside to grow and be managed by a trust management company. When drafting up the trust, consider whether you would like to include these 3 provisions to give your children these additional administrative powers.

Power to Vary Investments

While the trust may be set up so that your children only receives a certain amount of money at specified times, you might want to give your children the ability to choose how and where the money in their trust funds is invested. This administrative power gives your children the ability to sell any trust property and invest or reinvest the proceeds. You might also request for trust management services that will give your children some idea regarding the different investment options that are out there.

The party responsible for managing the trust fund will need to clearly provide detail on the different investment vehicle available. This should include the expected returns from the investment, as well as the risks that are associated with the decision.

Power to Borrow

At times, there may not be a lot of leeway as to the amount and the timing of when payments will be paid out to your children. This can be problematic for your children in the future if they end up in a bad situation and need access to some capital immediately.  The general law for trust funds give trustees little power to borrow. To give your children more leeway, include provisions that allow your children to borrow from the trust fund as they see fit or in the event certain circumstances are met.

If you would like to include this provision in the trust fund, discuss whether you need to set specific terms and conditions for money borrowed with the trust management services. For example, you need to determine whether you would need your children to return the borrowed funds within a specific amount of time or whether only a certain amount can be borrowed at a time.

Power of Joint Purchase

Another administrative power that has been known to be useful is to include provisions for the power of joint purchase. Basically, this means that your children can merge two trust funds together for the purpose of acquiring property. This provision is generally included to allow trustees to gain access to funds easily in an attempt to purchase residential property with another beneficiary.

Terms and conditions for the power of joint purchase may include whether the property acquired is for personal or business use. It may also include other terms that address any concerns that you may have with this type of decision, such as whether the property acquired needs to be located within a specific country.


Setting up a trust fund for your children can give you some peace of mind, as you know that they'll be financially protected in the future. Trust funds are incredibly versatile and diverse. Each trust fund can include different provisions and clauses to tailor the fund to cater to your concerns and needs. Trust management services can help you determine whether provisions for certain administrative powers will be beneficial to your situation. Contact a company like Home State Bank for more information.