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Daytona Beach Lawyers > Blog > Wills > How To Establish A Trust Fund For Your Child

How To Establish A Trust Fund For Your Child

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A trust is a legal entity that contains assets or property on behalf of someone else. They are very useful tools that can help you avoid taxes on your property so they can be distributed to your beneficiaries when they reach a certain age. One of the most important, and most common, reasons to create a trust is to ensure that children can avoid probate after a parent’s passing and have access to the property left for them.

A trust can also help avoid mismanagement of the funds by children, as the trustee will ensure the trust remains viable until needed by the child. Below, our Daytona Beach wills and trusts lawyer explains how to establish a trust fund for your child.

Establish a Goal for the Trust 

The purpose of the trust is critical to establish at the beginning because it will guide all other decisions you make. The primary goal will be to provide for the structured management of the assets and ensure the funds are used for your child’s benefit exclusively. However, you should also consider your child’s needs and include provisions that will meet them, such as if you want funds to be available only after your child reaches a certain age.

Choose the Type of Trust 

The type of trust you choose is very important. There are many different types of trusts you may want to consider including:

  • Revocable trust
  • Irrevocable trust
  • Special needs trust

It is always important to speak to an attorney when determining which type of trust to establish.

Choose a Trustee 

You can possibly name yourself as the trustee but you must also name a successor trustee who will manage the trust after you pass away. It is important to choose someone who will work in your child’s best interests, and who is ethical, reliable, and capable.

Draft the Agreement 

The trust you establish will outline certain provisions, conditions, and terms. It will specify how the property within the trust will be managed, distributed, and used to help your child. It is important to work with an attorney to ensure the trust is drafted and executed properly so it will protect your wishes, as well as your child’s best interests.

Fund the Trust 

When you fund the trust, you transfer assets to it. You do not have to fund the trust all at once but rather, set it up so it takes place over time. For example, you may want to transfer a portion of your income to the trust each month. Properly funding the trust ensures it has the necessary resources to fulfill its intended purpose.

Our Wills and Trusts Lawyer in Daytona Beach Can Help Your Family 

To make sure that the trust you establish will provide for your child and fulfill your goals, it is important to work with a Daytona Beach wills and trusts lawyer. At Bundza & Rodriguez, our experienced attorney can help you identify your goals and execute a trust that will ensure your child is taken care of now and in the future. Call us today at 386-252-5170 or chat with us online to schedule a consultation and to learn more about how we can help.

Source:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/0736.html

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