Q: Any way to distribute estate assets via trust or will incrementally over time as opposed to a lump sum distribution?
I have two children who aren't very financially savvy so I'm reluctant to drop a fairly large sum of cash on them at one time. I would like to set up an investment account and pay some out over a 10 year period with a full liquidation and distribution at the end of the 10 years.
A: Absolutely. This is one of the major benefits of a trust. It allows you to control your assets even after death. You can set it up to pay out however you’d like.
Nina Whitehurst agrees with this answer
An "inter-vivos Trust" also known as a "living" trust is created during the lifetime of the Trustor (think donor). It is managed by the Trustee (could also be the donor) for the benefit of the Beneficiaries (heirs-also include the Donor). You create the Trust with your attorney and you can have the terms of the trust say whatever you want with respect to the timing or length of the distributions. You need to have a "Successor Trustee" who will administer the Trust in the event of your death. Then you have to "fund" the Trust by transferring the title to property into the name of the trust. You establish bank accounts or investment accounts in the name of the trust. Now, you don't own the property any more, it is owned by the Trust. A Trust is considered a "person" under the law, same as a corporation or LLC. This can be very useful in a number of situations, including the one you describe in your question.
You also need documents that say what happens if you are incapacitated from making decisions on your own behalf often called a "Power of Attorney" or "Living will."
See a local Estate Planning attorney to have the trust and all the documents you need, drawn up.
Justia disclaimers below, incorporated herein.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.