Because there are so many different types of trusts, each designed to effectuate a particular purpose, the idea of establishing a trust for the benefit of a loved one or charity can seem daunting. However, the idea of a trust is simple: a fiduciary relationship in which a trustee takes care of assets contributed by the trustee, for the benefit of the trust’s beneficiary or beneficiaries. Many financial benefits, including lower taxes, may be possible through the use of a trust. Talking to a seasoned Nashville will and trust attorney can help further clarify the legal options that are available to those who are ready to engage in meaningful estate planning, manage wealth, and/or take steps to both provide for and protect individuals such as children or those who are disabled. The Randy Ratliff Law Offices, PLLC, in Nashville drafts a wide assortment of trusts and other estate planning tools like last will and testaments, powers of attorney, and health care proxies. We also handle probate matters, domestic relations cases, and elder law proceedings.Trusts: Popular Estate Planning Tools With Many Possible Variations
Trusts can be an especially popular option for young beneficiaries. Minors may be named as beneficiaries of several different kinds of trusts, both testamentary and inter vivos. For instance, a parent or grandparent may set aside funds to be left to a child or grandchild via a testamentary trust in a will. The money or other assets may be held in trust for the minor’s benefit until he or she reaches a certain age as established in the will. Depending on how the trust is drafted, the trustee may be able to distribute some of the trust’s assets or income prior to the beneficiary coming of age, or he or she may simply be held to the task of protecting the assets so that the beneficiary may have the full benefit of them later on. Money may also be held in trust for a minor following the settlement of a civil lawsuit or other situation in which a young child receives an amount of money that he or she could not reasonably be expected to responsibly manage at his or her age.Minor’s Trusts
The term “minor’s trust” can refer to a very specific trust established under the rules of the Internal Revenue Service. A § 2503(c) trust, as minor’s trusts are sometimes called, can be used to hold gifts made to minors in place until the minor beneficiary reaches the age of 21, until which time the trust assets are managed by a trustee. These types of minor’s trusts can be attractive to some would-be givers because of how the income of the trust is taxed, among other reasons.
If you have a young person that you intend to make a beneficiary of your estate, or to whom you wish to make a sizeable gift (perhaps for his or her future educational needs) during your lifetime, you should talk to a lawyer about your legal options. If a minor’s trust is not the right choice for your situation, there are almost certainly other possible tools that are available to help make your wishes known, and carry them out in the most cost effective manner possible.Estate Planning Attorney Serving the Nashville Community
The Randy Ratliff Law Offices, PLLC, proudly serves the residents of Davidson and Williamson Counties, including in those in Nashville, Antioch, Franklin, Brentwood, Franklin, Hermitage, Madison, Goodlettsville, and Joelton. For an appointment to get started on the important task of planning your estate, call us now at 615-656-8282 or contact us online. Everything that you discuss with us will be held in strictest confidence. It is our goal and desire to help our clients rest assured that everything possible, within the bounds of the law, has been done to protect their wealth and see to the future needs of those who will someday be left behind.