Q: I am single and ready to hire a lawyer to write my Last Will & Testament, which includes leaving my assets to 4 minors.
A Trustee will be named in my Will who will create a separate Trust for each minor after my death. Do Trusts need to be created in my Will or can the Trustee create them after my death?
A:
There are options for leaving assets to minors. When the value of the gift is not significant (for example, less than $10,000), a simple option would be to give the property to a custodian for the minor under the transfers to minors act. While assets having a greater value may be given to a custodian under the transfers to minors act, the property must be turned over to the minor child when he or she reaches the age of twenty-one (21) years, and this may not be appropriate for assets having a significant value.
A second option is to give the property to a trustee for the benefit of the minor. The trust would specify how the trust property is to be used, and at what ages the children receive the trust property. If the trust is created in the will, it is referred to as a "testamentary trust." A testamentary trust does not go into effect until after the death of the testator. Separate trusts or trust shares could be established for each child, or there could be a single trust for the benefit of all the children. A single trust for more than one child is sometimes referred to as a "pot trust."
To answer your question, unless you create a trust or trusts for your children during your life, the provisions which would establish the trust would be included in your will and the trust or trusts only would come into existence after your death. Therefore, it would be you, and not the trustee, who creates the trusts after your death. The trustee would be serving as trustee of the trusts created by you through the provisions of your will.
This answer is intended to provide general information only and is not intended to provide legal advice for your particular situation. It does not establish an attorney client relationship. You should consult with a qualified estate planning attorney to assist you with your estate plan.
A: When you create your will, you should include a Trust for Minors as part of the will. It will name the trustees. The actual trust will not be established until the trustees determine that the conditions to establish the trust are met. They will then set up a trust account at a bank or brokerage account for the beneficiaries.
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