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

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[quote=Anonymous][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..
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OP. Your mom's plan makes a lot of sense. Thanks for explaining it. I can see something like this working well. [/quote]

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