A Trust is not a mystery; here is an example. Let’s talk about what might be included in a somewhat routine trust. You should understand how it works.
A Trust is not a mystery; here is an example. When you sign your Trust, we will also put property into your Trust. The Trust can manage only what it owns, and funding the Trust keeps your family from having to go through probate upon your death.
During your life, you use the property held in your Trust just as you would if there were no trust. Upon any incapacity, your Trust is there (and through administration by your named Trustee) to care for you.
At your death.
Upon your death, your Trust remains there for your spouse during their life and any incapacity. Also, upon your death, your Trustee may distribute things per your Trust’s Personal Property Statement. So, your Trustee might deliver your hobby items to your child, your collectibles to your nephew, and divide your quilts among your children.
Upon the death of your spouse, your Trustee may distribute (per the terms drafted into your Trust):
- funds in support of minor children or grandchildren until they reach the age of majority;
- funds set aside for post-high school education or training of certain people;
- real estate, divided among your children;
- any charitable contribution you may have directed;
- remainder of assets to people you name (to receive right away or upon reaching certain ages, if you like).
Once the Trust has distributed all property, its function is at an end, so it terminates.
A Trust is not a mystery; here is an example.
I hope you have a better understanding now. If not, let me know! I am Dan Covington. You can always find me at EstatePlanKansas.com or on Facebook at “Estate Plan Kansas.” Let me know what I can do for you: http://estateplankansas.com/contact/