The Process Of Creating A Trust For Your Child
You can create a trust for your child. And, depending on your long-term estate planning goals as well as what you would like to give your child, you may want to.
Going over the process of creating a trust for your child, and speaking with a lawyer, will allow you to create a trust that satisfies your estate planning goals.
The Process Of Creating A Trust For Your Child
Step 01: Outline The Purpose Of Your Child’s Trust
The first thing you must do is outline the purpose of your child’s trust.
If, for example, you would like to provide for your child, in their adulthood, after your passing, then this goal must be clarified.
On the other hand, if you have another goal, then this, too, must be clarified.
Step 02: Select The Appropriate Trust
Right after you clarify your goals, you must, then, select the appropriate trust.
Some of the different trusts you can develop are as follows:
- A special needs trust.
- An irrevocable living trust.
- A revocable living trust.
You can figure out which trust is most appropriate by speaking with a lawyer. Doing so will allow you to clarify your goals, and in turn, the best way you can achieve those goals.
Step 03: Select A Trustee
Your child may not be old enough – or, for that matter, ready to – access or use the trust that you have created for them.
To ensure that the trust is protected, and that your estate planning goals are achieved, you must select a good trustee.
The process of selecting a good trustee is dependent on your goals, the people around you, as well as the trust that you have selected.
Just like the second step, a good lawyer will help you select the right trustee and, in turn, inform them of their role and how to perform it.
Step 04: Develop A Trust Agreement
Right after you select a trustee, you must develop a trust agreement.
A trust agreement will clarify the nature of your trust and, in turn, the goals that it will achieve.
But, of course, that’s not all.
A trust agreement will also clarify the powers and responsibilities of your chosen trustee. This will allow them to manage the trust properly and serve the goals that your trust is meant to achieve.
Every trust agreement is different and, as such, you must work with a lawyer to develop this agreement.
Step 05: Transfer Assets To The Trust
You must transfer assets to the trust you have created.
If you do so, though, you must do so properly; improperly transferred assets are unlikely to go to your child.
The best way to transfer assets to the trust is to clarify which assets you would like to transfer and, with the help of a lawyer, to transfer those assets in the proper manner.
Speak With A Florida Estate Planning Lawyer Today
A wealth of other steps, considerations, and processes comprise the process of creating a trust for your child. Speak with a Florida estate planning lawyer at the Millhorn Elder Law Planning Group today and we will help you go through all of those things properly.
Sources:
law.cornell.edu/wex/special_needs_trust
law.cornell.edu/wex/irrevocable_trust
law.cornell.edu/wex/revocable_trust
