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Old 02-07-2018, 01:49 PM
 
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IF you have any minor heirs (in my case nieces and nephews) how did you make arrangements for their inheritance to be taken care of for them? Named the parents or someone else as the trustee for the money? Had trusts created (at time of death) for them?

Of course, I hope the minors attain age of majority by the time I croak -- but I can't wait 7 years to get my will updated ... the youngest one is 11!

Thanks
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Old 02-07-2018, 03:06 PM
 
Location: Ypsilanti, MI
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In our second Will we identified a local Trust Company to create and manage trusts for our two young sons. We identified my wife's sister and her husband to be their guardians. The guardians were to receive a specified portion of our estate for this future care. The remainder was all to be placed in the two trust funds for the boys. We also stipulated the ages at which disbursements would be made from the Trusts ( I think we chose 18, 25, and 30) as well as the percentages to be distributed.
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Old 02-07-2018, 03:43 PM
 
Location: Florida
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be sure to provide a method for firing the trustee and moving to another trustee if performance is poor.
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Old 02-07-2018, 04:08 PM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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yes, write 'staged disbursements' from a trust for minor beneficiaries.

Our attorney was insistent to keep some fixed clauses and dates / ages in an attempt to avoid future 'gold-diggers' / spousal issues, as well as planning for expenses / needs / care pre-adult age.
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Old 02-07-2018, 04:42 PM
 
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Our children and their first cousins inherited some money from a relative, and it was quite a mess. Her lawyer drew up the trusts so that no parents were trustees for their own children, but rather were trustees for their siblings' children. It was a pain for the sibling who had to deal with the paperwork and responsibility of money for someone else's kids for years and years, but much worse, the money was invested with the sibling's financial advisor instead of the parents. The fees were awful, and there wasn't anything to be done about it. We finally took the money out when we could - at which time they also charged us back end fees. Insult to injury. Learn from our pain, selhars! LOL.
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Old 02-07-2018, 04:52 PM
 
Location: Sierra Nevada Land, CA
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Quote:
Originally Posted by Posh66 View Post
Our children and their first cousins inherited some money from a relative, and it was quite a mess. Her lawyer drew up the trusts so that no parents were trustees for their own children, but rather were trustees for their siblings' children. It was a pain for the sibling who had to deal with the paperwork and responsibility of money for someone else's kids for years and years, but much worse, the money was invested with the sibling's financial advisor instead of the parents. The fees were awful, and there wasn't anything to be done about it. We finally took the money out when we could - at which time they also charged us back end fees. Insult to injury. Learn from our pain, selhars! LOL.
As you may know, mrs5150 is an estate planning attorney. She cringes at this sort of stuff. Find a GOOD estate planning attorney and get the situation fixed.

As to the OP find a GOOD estate planning attorney. The upfront cost is well worth it.
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Old 02-07-2018, 08:28 PM
 
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^^ Yes. I was just looking for clauses or set ups or ideas that had worked -- or NOT worked for others.

It IS unfortunate when even good planning doesn't avoid the "complications" all the planning was intended to avoid.
But words on paper can't account for human personalities, I guess.
And I'd imagine it IS always better to at least have the plan -- than not have it.

I already know that even at 18 -- if I croak and there's anything left for an inheritance -- every one will get their share -- whether they're 18 -- or 38. No stages or strings attached from the grave. (No pejorative intended.)

I just want an even, simple split. The main complication now is they're not all 18 yet.
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Old 02-07-2018, 09:20 PM
 
Location: Raleigh
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There was a grant set up by my mother for my "heirs" and my brother's "heirs", to be held until they were 21. Mother passed in 1976. Since my brother and I are still alive, we have no heirs yet, and that fund should be quite sizable by now, eh? The Dow is up 25 times what it was then, with interest and dividends, can you imagine?
Fortunately, or not, depending on your POV, NC has a law that provides that that is interpreted to mean any living grandchildren at the time of her death, so we were able to fund their college education. In addition, while a trust was mentioned and I was designated sole trustee, there was no actual trust created beforehand.
My father (they were divorced) also set up a trust for his wife and daughter in his will with no actual trust created and no property assigned in trust. His wife predeceased him and no distribution was made other than life insurance. After Dad passed we (with lawyers) decided there was no trust because no property had been titled to the nonexistent trust and all should go to his grandson by his second wife as stated in his will; nothing for my kids which was fine by me and my brother. My half sister sued the estate, which was mostly in benefit of her 17 year old son, to turn the real property and remaining cash over to her. All these documents were created at great expense by lawyers.
"hilarity ensued"
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Old 02-07-2018, 09:29 PM
 
Location: Raleigh
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Quote:
Originally Posted by selhars View Post
^^ Yes. I was just looking for clauses or set ups or ideas that had worked -- or NOT worked for others.<>I just want an even, simple split. The main complication now is they're not all 18 yet.
Well as far as I know in most states they can't receive control until they are 18 and the state may well decide how it gets spent or conserved. That gets into probate. A state appointed conservator is going to be very conservative and expensive. There may be severely less money going to them unless the trust is created now.
Dear wife and I have completed our trust setup and real estate titles and checking accounts and stock accounts are all designated to the trust. There are provisions so that the proceeds go to her son and my daughter and not to their spouses. Everyone knows about the setup and is good with it.
Of course, someone may pop his head up and explain why this was a terrible way to go.
"if you want to make God laugh, tell Him your plans."
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Old 02-08-2018, 12:40 AM
 
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Quote:
Well as far as I know in most states they can't receive control until they are 18 and the state may well decide how it gets spent or conserved. That gets into probate. A state appointed conservator is going to be very conservative and expensive. There may be severely less money going to them unless the trust is created now.
I'll definitely ask about that detail.
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