When it comes to safeguarding your children’s future, establishing a trust can be one of the most prudent steps you can take. At Surprenant & Beneski, P.C., our seasoned trust attorneys specialize in assisting clients throughout Southeastern Massachusetts and Cape Cod in protecting assets and securing family legacies. Here’s an informative guide to help you understand the essentials before setting up a trust for your minor children.
What Is a Trust?
A trust is a legal arrangement in which assets are held by a trustee for the benefit of another party, known as the beneficiary. When setting up a trust for minor children, the trust operates as a mechanism to manage and protect assets until your children are of age or meet other conditions you’ve set. Trusts can offer flexibility, tax benefits, and can be tailored to meet the needs of your particular family.
Why You Need a Will in Addition to a Trust
While a trust is instrumental in managing and protecting your assets, having a will is also critically important. Not only does your will cover any assets not included in the trust, but it designates a guardian for your children.
Types of Trusts for Minor Children
There are several types of trusts for minors. Our attorneys will listen carefully to the details of your family situation and help you decide which one best meets your needs and the needs of your child.
Testamentary Trust
A testamentary trust is created as part of your will and only comes into effect after your death. This trust specifies how your assets will be managed and distributed to your children.
Revocable Living Trust
This trust allows you to maintain control over the assets during your lifetime, with the assets passing to your children upon your death. It can be amended or revoked at any time before your death, offering flexibility as your circumstances change.
Irrevocable Trust
An irrevocable trust is one that, once established, cannot be easily changed or revoked. This type of trust offers tax benefits and asset protection but at the cost of losing control over the assets placed within it.
Special Needs Trust
If your child has special needs, this trust ensures that they will receive the financial support they need without jeopardizing their eligibility for government benefits, such as MassHealth (Medicaid) or SSDI.
How To Make Sure Your Child Makes Best Use of the Trust Funds
A worry many parents have is that their children, even once they have reached the age of maturity, may go through their trust funds too quickly. One great advantage to leaving your child a trust fund rather than a direct inheritance is that in a trust you can set clear conditions for the distribution of wealth, specifying the conditions under which your child can access the funds, such as reaching a certain age or achieving specific milestones like graduating from college or establishing a business. With a trust, you can also select a competent trustee who shares your values to manage the trust’s resources according to your directions.
Contact Us Now To Set Up a Trust for Your Child
Having a child is a great delight and an enormous responsibility. Get in touch with the talented trust attorneys at Surprenant & Beneski so we can help you decide which trust is best suited to protecting assets for your child. We will draft, review, and implement the document and make sure it is in full compliance with state laws. Contact us today to secure your family’s legacy and give your children the financial stability you want them to have.