A trust is a very significant estate planning element. This legal document, which is almost similar to a will, is used to transfer ownership of properties to designated individuals regarded as beneficiaries. The main owner of the trust is often regarded as a grantor. It is the duty of the grantor to name a trustee. On the other hand, it is the sole duty of the trustee to share the assets contained in the trust to the designated beneficiaries at the right time.
Creating a trust for a minor
In a trust created for little children, the beneficiaries are usually the children. Creating a trust for those little children of yours is definitely not a walk in the park. It consists of several process. However, you will have very little to worry about if you hire a competent estate planning attorney or a trust attorney. Below are some steps to stick to:
Choose a trustee
For any trust created, there must be a grantor and a trustee. If the owner of the trust (grantor) creates a living trust, he can designate his or herself as the trustee. But, if a grantor decides to select his or herself as a trustee, then he or she must make provision for a successor should incase the individual kicks the bucket.
The duty of the trustee is quite simple. He or she is to manage and distribute the assets placed in the trust based on the terms of the trust. Furthermore, the trustee has a fiduciary duty to take certain actions on behalf of the beneficiaries. Isn’t that simple enough?
Draft the terms of the trust
This is very important because the terms of the trust will determine how the assets placed in the trust will be managed and distributed after the demise of the grantor. The grantor will have to make plans regarding how the children will receive the assets placed in the trust. For example, the grantor can indicate the exact time (age) he wants the minor children to receive the assets placed on the trust. When the money placed in the trust is large, it is usually distributed in little portions. This is a very common practice.
Draft the required trust documents
After all has been done concerning the designation of a trustee and drafting the terms of the trust, the grantor must go ahead and create the necessary legal document which is regarded as the trust deed. In a trust deed are the names of the beneficiaries and the designated trustee as well. This document also indicates if the trust is a revocable trust or an irrevocable trust. If the grantor wants to relive him or herself from the stress of creating this document, the individual can get a lawyer to create it or buy a trust kit.
After the creation of the document, it requires proper execution. That is, it has to be signed in the presence of a notary or in the presence of one or two witnesses.
Place assets in the trust
This is the final phase. The grantor has to assign ownership of his or her assets to the trust for the trust to be complete. If the grantor intends to place real properties in the trust, the individual may be required to present a new deed that comes with trustee language, like “Paul Parker, trustee of the Parker Living Trust, dated April 12, 2020.
After the transfer of the assets to the trust, it is the job of the trustee to manage the assets for the beneficiaries.
Remember, a trust can help secure the future of your children. So make that wise decision today.
Estate Planning Attorney
Creating a trust for a minor can be a very complex process. Such plans are best handled by professional lawyers, not yourself or the some estate-making site on the net. To create a trust that secures the future of your minor children, you need someone who understand your wishes and is capable of incorporating those wishes in the terms of the trust. You need someone who won’t make silly mistakes that might ruin that trust. An estate planning attorney and not yourself, is the best pick for this job. Contact us and we will provide you with the best trust attorney who’ll help create the best trust for those minor children of yours.