Trust and custodianship

CUSTODIANSHIP- In every state except Carolina and Vermont, you can choose someone, called a custodian, to manage property you are leaving to a child. If you die when the child is under the age set by your state’s law – 18 in a few states, 21 in most, 25 in several others – the custodian will step in to manage the property until the child reaches the age specified by your state’s law. To set up a custodianship, all you need to do is name a custodian and the property you are leaving to a young person. You can do this in this in your will or living trust.

TRUST – you can use your will to name someone, who will handle any property the child inherits until the child reaches the age you specify. Generally, the trustee can spend trust money for the young person’s help, education and living expenses. When the child reaches the age you specified, the trustee ends the trust and gives whatever is left of the trust property to the child. Serving as a trustee is more work than is serving as a custodian under the UTMA. For one thing the trustee must file annual income tax returns for the trust. And because the powers of a trustee are limited to what’s allowed in the wil or other document authorizing the trust, the trustee may have to show the will to banks and others with whom he or she deals

If you have more then one child, you may want to set up just one trust for all of them. This arrangement is usually called “pot trust”. When the youngest child reaches a certain age, usually 18, the trust ends. A pot trust provides great flexibility for the trustee.

Дата добавления: 2015-07-25