How should I set up this trust
April 3, 2011 10:43 PM Subscribe
What are some ways to structure a trust? I'm setting up a trust so that if I die, my child would not have a sudden, relatively large windfall. I've got life insurance, 401k and quite a bit of equity in a house, and at this time, I think it would be problematic.
posted by anonymous to human relations (11 answers total) 4 users marked this as a favorite
It sounds like I need to set an age where he'd get the full amount. The trustee will be a close family friend, whose judgement I trust, and who can make decisions about health, welfare and education. It's okay with me if my son takes a trip around the world, but not okay if it goes on hookers-n-drugs. He's doing really well, but has abused drugs in the past, and I think the cash would be bad for him. He's in his early 20s.
A good age to let him have whatever remains, and the trust to be closed up?
Should he have a monthly (quarterly/annual) draw on the trust?
or use it only a needed?
The lawyer gave me some ideas, but looking to see how others may have handled this. I'm divorced, his Dad is financially irresponsible, and I hope to be using this money for retirement, but things can happen. thanks.