Reply to Testimentory trust for minor children - what terms would you put on it?

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[quote=Anonymous][quote=Anonymous]We're going to specify in our will that the assets left in our estate plus our life insurance payouts  will find a trust for each of our minor children. We are talking about when the trust would provide funds. If you anticipated a million to a million and a quarter in each trust, what would you specify and why? Simple lump payout at a certain age? Payouts at multiple ages? Allow guardians to cover educational expenses? Something else?

Just curious what people's preferences or recommendations would be. Tips and experiences?[/quote]

I am the named executor of a sibling's trust (single parent).  The way it was setup, kids will get 4% each year of the what they inherit (will be about $2M each if that event happens today) until age 35 (Kids are 16 and 14 now), at which point they just the whole thing.  There's a separate bucket of money for healthcare (insurance premium, etc.  One of the kids has health issues; this bucket will be funded by Life insurance proceeds).  College expenses, will be paid for over and above the 4%.   Don't recall if the accounts just transfer over at age 35 or if the trust splits into two.  As executor I'll have the liberty to invest the money as I deem fit as well as pay out additional amounts if appropriate..

OP - You are right in crowdsourcing ideas.  We did extensive research when setting this up.  The lawyer was good at telling us what will and won't work but did not offer any suggestions or recommendations on their own.  Most of these estate planning gigs are for a fixed fee and the lawyer has every incentive to keep it as simple as possible.  Even if it was T&M, why would you want to pay by the hour to blue sky options like these with a lawyer? [/quote]

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