Answer to the question: How do I set up a trust fund for my children?

I thought I’d post this question from Jujubee since a lot of people seem to be asking it lately:

I am wondering how to set up a trust fund for my children in the event of my death. I am writing my will and it includes a section for trust, but it only entails what age disbursement occurs. I want to allow it to be used only for education up to a certain age and then disbursed after a certain age if any remains. Does anyone know how this would be worded?

Answer: I’ve been through this with my wife and here’s what I’ll tell you.If you’ve got enough money to fund a trust, you’ve got enough money to get a lawyer to do this for you and make sure it’s done right. I’ve been a careful investor and paid attention to all sort of paperwork, but this was something where I wanted to be sure and I wanted to make sure there was no argument over it when I-We’re gone.I had a will, properly done already, but my wife and I took that and used it as a basis for a new will drafted for the state we currently live in. As part of them, apart from beneficiaries, we also set up trusts. What you’re trying to do is not simple and it may not be legal, but if you’re going to make it legal, you need to get help.The way ours works is that we’ve changed beneficiaries on all of our assorted investments and things. We are obviously beneficiaries to each other, then the beneficiary is a trust that is funded by any money we have (a fair amount). They are in effect inactive until we both die. But we have designated trustees, etc. — everything and it’s done in a way to minimize legal fees handling it. It’s also set up to avoid lawsuits, etc. The cost for this is not all that high – we had several long and complicated meetings andI think it still was only about $2,000, maybe 3. But because we have an established relationship and the documents are on file, we have made modifications in our will to represent minor changes without charge.codicils are just not a big deal and this way we know it’s right. We found our lawyer for this through our regular famiily attorney and it was a good recommendation. When it comes to disbursements, we made changes from what we initially thought to what we know is legal and correct, not far different. In the process, we also did living wills, designations of who gets to control medical care if necessary with some very explicit instructions. There is also because we haven’t made our own burial plans a provision for who would make those decisions if we haven’t. It’s a big family and we know who should do what. What you will find is that there are are things you didn’t even think about that you should. One that I did think about was a collection of personal but historic artifacts and stewardship of those goes to a separate trust with instructions on how I want it done. I wil probably revise that and actually establish it relatively soon, but it’s important it not be left hanging until I do. You’ve made a big start toward getting this done. drafting a will puts it all down and it just has to be checked for form and to be sure you haven’t missed anything. On the trusts, the same thing is true, so you’ll at least be able to hold your bills down. But again, it is worth the price.Just remember, this is a specialty area. it’s not a question of paying more. But you want someone who does this on a regular basis and who’s familiar, intimately, with tax law as it applies. Not a general practictioner. I can tell you the law has changed a good bit and what we’ve saved on taxes already has aid the price. Also, it’s not inconceivable that we will make arrangements to have this all probated in another state for reasons that I’d rather not go into.

ermine who are the decedent’s heirs. The purpose of court involvement is to protect the rights of the family, those entitled to receive property, and the creditors of the decedent’s estate. Therefore, although title to property passes immediately at death, the assets of the estate are subject to the control of the executor or administrator of the estate for the purpose of settling the debts of, and claims against, the estate. After the payment of debts and claims, the remaining assets are distributed to the decedent’s beneficiaries or heirs-at-law. If the decedent died with a legally valid will, then his or her property is distributed according to his or her wishes as expressed in the will. On the other hand, if the decedent died without a will or if the will is declared invalid, the estate is distributed to the decedent’s heirs as determined under Texas law. The decedent’s heirs may not be the persons to whom the decedent wished for his or her property to pass