Setting up a trust fund for your child can be a significant way to help children when they are adults. However, in order for your trust to be effective, you must be careful and create a trust that prepares for common scenarios and protects your child from estate taxes in the future, keeps your estate out of probate, offers protection from lawsuits or creditors, and can specifically protect loved ones with special needs. Establishing a trust with the experienced attorneys of The Millman Law Group can help you prepare your child for the future. We can work with you to move through the following steps.
Specify the Purpose of the Trust
Before setting up a trust for your child, you should have a clear idea of the purpose of that trust. Who will the trust benefit – one or all of your children? If certain assets go to particular beneficiaries, that must be clearly defined.
Trust funds can be set up for various reasons, including providing college funds, handing down real estate, or as a way to pass down other inheritances and assets. Trust funds can also set up financial security for a loved one with special needs.
Clarify How The Trust Will Be Funded
After setting up a trust, it must be funded to hold assets, offer protection, and eventually be distributed. As soon as you decide on the purpose, the next step is to figure out which assets the trust could hold. You can fund trusts through investments, real estate, or cash.
Decide Who Manages the Trust
The most crucial step is deciding on a trustee (the person who manages the trust fund). You must choose someone trustworthy, as they will have the incredible responsibility of managing the distribution of the trust on behalf of the beneficiaries (your child).
Legally Create the Trust
Once you have decided who the trust will benefit, how you will fund it, and who will manage it, it’s time to legally create the trust fund for your child. Working with an experienced estate planning attorney can ensure that you make no mistakes that have repercussions later for your child when they want to benefit from the trust.
Transfer Assets Into the Trust
The final step in setting up a trust fund for your child is funding the trust. Funding a trust means that you make the trust the owner of the assets you want it to hold. If you transfer your property into it, you must have a new deed executed that uses trustee language. Other assets, including accounts, investments, or policies, will need to be retitled to be trust-owned. This can often be done by contacting financial institutions directly.
Once the trust fund is fully funded, the trustee you name can begin to manage the assets inside it on behalf of your child. If you named yourself as trustee, you will want to name a successor who can step in when the time comes.
Estate Planning Made Easy With Millman Law Group
Millman Law Group, PLLC is rare because it’s one of the only law firms that offer life planning in South Florida. From life care planning to the preparation of detailed estate plans, Millman Law Group has committed to serving Floridian elderly communities in Boca Raton, Palm Beach County, Ocean Ridge, Hillsboro Beach, and many other areas since 2018. Our dedicated team also specializes in special needs Trusts and catering to any age demographic because we know for certain it’s never too early to start preparing you and your family for your future. For the latest news in estate planning and elder care law, follow us on Facebook, Twitter, Linked In, and Pinterest. You can also contact us at 561-463-6480.