You may decide that an immediate distribution of the remainder of your estate to your chosen beneficiaries is not best for them. A surviving spouse may not be able to manage the Estate. A parent may believe that a child is not ready to handle a large some of money at eighteen years or whatever age. These issues are dealt with by establishing a trust or trusts in the Will. A trust is a right of property held by one person for the benefit of another person. The person making the Will is the “Testator” and if he or she creates a trust in a Will or during his or her lifetime, he or she is the “Settlor” of the trust. The “beneficiary is the person who receives the benefit of the property or the money. The “Trustee” is the person who holds legal title to the property in trust for the benefit of another person and he or she is given powers and duties to carry out the terms of the trust. You direct the Executor/Trustee to hold your Estate or part of it, in trust for the beneficiary or beneficiaries. The child’s share could be held in trust for his or her benefit until he or she reaches a certain age with discretion to the Executor/Trustee to benefit the child by paying for education or other special expenses until the child reaches the specified age.
Please Note: This information is not intended to contain advice specific to your situation. There are no cookie cutter solutions. After all, you are reading this information on the internet. Your situation is special and unique and you must be guided by specific individual advice from your Lawyer, Certified Financial Planner or Accountant.
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