Guardianship & Trust for Minor Childred

[chiquita_bob]

Hi, My husband and I live in Savannah, Georgia. We are in the process of constructing our own will due to the recent birth of our first child. In the event that we both are deceased, we have nominated a guardian for our minor child(ren). We would like to have any monies, not needed for immediate costs, to go into a trust for our child(ren). When you appoint a trustee over the trust (until child is of proper age), doesnt this person have complete control over the entire portion of trust? I would like the guardian to use the trust to provide necessary expenses such as eduation. How do you regulate the flow of money coming out of a trust to be designated for "proper" expenses? Assigning a firm or bank to manage a trust is costly. I would like the money to be spent wisely for my child(ren).

Also, is it possible to have the estate divided evenly (per child), 50% to guardian for expenses and 50% to an account that would return interest and be only accessible by the child, at a specified age?

Thank you, Elizabeth

 

[BlondiePB]

When you appoint a trustee over the trust (until child is of proper age), doesnt this person have complete control over the entire portion of trust?

Yes.

I would like the guardian to use the trust to provide necessary expenses such as eduation. How do you regulate the flow of money coming out of a trust to be designated for "proper" expenses?

The guardian would have to obtain a court order(s).

Assigning a firm or bank to manage a trust is costly. I would like the money to be spent wisely for my child(ren).

Make certain you have "honorable" people nominated for these postions. Even though you have nominated people to carry out your wishes, they do not do so - especially Trustees. Read the horror stories in this forum's Wills & Trust section. The court will have the final say regarding your nominations. Not everyone is eligible/qualified to be in these positions.

Also, is it possible to have the estate divided evenly (per child), 50% to guardian for expenses and 50% to an account that would return interest and be only accessible by the child, at a specified age?

Yes. When you have nominated two different types of fiduciaries, the one that has the "hands-on" care is more "in tune" with the needs of that person.

Thank you, Elizabeth

You are welcome.

 

[chiquita_bob]

Okay, below is what I have regarding my child's trust in our will so far. My question to you is: How do I state, in legal jargon, wanting the share of the child's estate split 50/50::
1) a trust for expenses (as stated below)
2) an interest-bearing account this is not touched at all until 25.
Thanks for all your help, Elizabeth

"FOURTH: In the event that any of my children have not reached the age of twenty-five years at the time of my death, then the share of any such child shall be held in a separate trust by ______for such child.

The trustee shall use the income and that part of the principal of the trust as is, in the trustee’s sole discrestion, necessary or desirable to provide proper housing, medical care, food, clothing, entertainment and education for the trust beneficiary, considering the beneficiary’s other resources. Any income that is not distributed shall be added to the principal. Additionally, the trustee, as well as the power to pay from the assets of the trust reasonable fees necessary to administer the trust.

The trust shall terminate when the child reaches the age specified above and the remaining assets distributed to the child, unless they have been exhausted sooner. In the event the child dies prior to the termination of the trust, then the assets shall pass to the estate of the child. The interests of the beneficiary under this trust shall not be assignable and shall be free from the claims of creditors to the full extent allowed by law."

 

[BlondiePB]

Okay, below is what I have regarding my child's trust in our will so far. My question to you is: How do I state, in legal jargon, wanting the share of the child's estate split 50/50::
1) a trust for expenses (as stated below)
2) an interest-bearing account this is not touched at all until 25.
Thanks for all your help, Elizabeth

"FOURTH: In the event that any of my children have not reached the age of twenty-five years at the time of my death, then the share of any such child shall be held in a separate trust by ______for such child.

The trustee shall use the income and that part of the principal of the trust as is, in the trustee’s sole discrestion, necessary or desirable to provide proper housing, medical care, food, clothing, entertainment and education for the trust beneficiary, considering the beneficiary’s other resources. Any income that is not distributed shall be added to the principal. Additionally, the trustee, as well as the power to pay from the assets of the trust reasonable fees necessary to administer the trust.

The trust shall terminate when the child reaches the age specified above and the remaining assets distributed to the child, unless they have been exhausted sooner. In the event the child dies prior to the termination of the trust, then the assets shall pass to the estate of the child. The interests of the beneficiary under this trust shall not be assignable and shall be free from the claims of creditors to the full extent allowed by law."

You need an attorney to do this for you. Also, have your attorney do a Stand-by guardian for your child