Today most people work corporate jobs that require them to work long and tiresome hours, you see most people will work the entire week and then go out on weekends and try to escape the world of finance and financial debt, now depending on the person you will find the difference in weekend escape activities.
Most people will choose to try and escape the world they currently live in by saving up for years at a time and them taking two weeks of holiday and jetting off to another world, totally different form the one they are currently living in.
Now depending on who you are working for and what your job consists, you will have a package or rather a set of terms and conditions that come with your work contract. Most of these conditions include some form of in-house medical aid, pension fund, and even an option to invest in the company’s shares or market stock.
Now, this may sound awesome in theory but in reality, these package options take away a lot of your monthly income and if you invest within the company you essentially trap yourself within the company because of what you have invested in.
It can be both good and bad if you choose to invest in the company you work for, because of two reasons,
- If the company does poorly your stocks and asset values will drop drastically and the money you invested with that came from your salary could very well be wasted.
When company stocks drop drastically, there is always a high chance of the company going under and you losing all you own just to make it till you have another line of work or job in the field of your work.
- If the company does well and when you retire you can make a lot of money from over 25 years of investing within the company.
Now, from here things begin to get complicate when you are looking after children or other people. The reason behind this complication is death itself. Unfortunately, we live in a world today where everything today can kill us, and the reality is that sometimes parents don’t make it home from the office.
Where does this leave their children?
Well, the simplest answer is the children or other family members are left without a parent or family member, simple as that.
It also means that the 25+ years of investing will not be protected and family often fight over the dead member’s assets and belongs.
This is where making use of living trusts can become so important. Your estate is protected while you are living and when you eventually do pass on to the next life nobody will be able to fight with each other or take the company you worked for because they refuse to release your assets because of a technical issue.
Who can make use of Living Trusts?
Anybody can invest in living trusts because it is available to everybody and everyone. It is an effective way of making sure that when you pass on your past is put in good hands.