Establishing a Trust for Your Kids
- A Living Trust: as the name implies, a living trust is one that you establish while you are living. You may maintain control over the assets for the benefit of the beneficiary. A living trust may have probate and tax advantages depending on how the trust is set up.
- A Testamentary Trust: a testamentary trust is part of a person’s will. The trust does not exist until the creator of the trust dies and his will is probated at which time, if everything has been executed correctly, the trust will be funded for the beneficiaries. It is common to use this type of trust if you have minor children whom you wish to provide for when you die. The money that you want to leave for your children, who may be too young to manage the money, will be held in trust for them until the reach the age specified in your testamentary trust.
- A Special Needs Trust: a special needs trust may be created to leave money to a person with disabilities. It is especially important that this type of trust be drafted correctly so that the trust assets do not threaten the disabled person’s ability to collect social security or Medicaid assistance.
- A Uniform Transfers to Minors Act Trust: this type of trust typically consists of securities and is set up at the time that the assets are purchased.
Speak to an Experienced Trusts Attorney Today
This article is intended to be helpful and informative. But even common legal matters can become complex and stressful. A qualified trusts lawyer can address your particular legal needs, explain the law, and represent you in court. Take the first step now and contact a local trusts attorney to discuss your specific legal situation.