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Trusts

A trust is often, but not exclusively, used in wills, and is a very powerful testamentary tool and tax savings device.

Let us suppose you wish to leave a portion of your estate to a child or other beneficiary who is a legal minor. The child's share of the estate will have to be held "in trust" by the Estate Trustee of your will under the terms specified in the will. The share of the estate does not belong to the Estate Trustee, he or she is only holding it for the benefit of the child until he or she reaches a specified age. During that time, the Estate Trustee could be authorized to use the funds in the trust for the education, medical care, or other benefits of the child.

This kind of trust arrangement is called a "Testamentary Trust" because it is contained in a testamentary document, namely your will.

Another kind of trust arrangement is where you create a trust for the benefit of your family members and transfer property into it during your lifetime. This kind of trust is called an "Inter Vivos" ("during lifetime") Trust. These trusts are created for many purposes, usually including tax reduction, and can be an extremely flexible and beneficial tool in the proper circumstances.

Special trusts can be created in your will to care for children with disabilities or special needs, or children who may have addictions or debt difficulties. In this way, funds can be controlled by your Estate Trustee, who can dispense them for the ongoing benefit of the beneficiary, or to prevent their misuse.

At Keyser Mason Ball LLP, we can advise you when your circumstances may require a Testamentary Trust in your will or an Inter Vivos Trust for tax reduction or business reorganization. Our experience and expertise will help ensure that the needs of your beneficiaries and your planning wishes are carried out.

If you would like to know more about this or other issues in estate planning, please visit the other information links for our Estate and Business Succession Services Group. Or if you require advice or guidance regarding your duties as an Estate Trustee, call us and make an appointment with one of our lawyers in this Group. We look forward to hearing from you.

Contact:

Daniel C. Barichello dbarichello@kmblaw.com

Suzanna Winsborough swinsborough@kmblaw.com