Anonymous
Post 10/16/2018 21:09     Subject: Re:How did you set up a trust fund for your child?
Anonymous wrote:It doesn't sound like the OP has a lot of money so I am not sure of the purpose of a trust. If it is for college expenses a 529 makes the most sense due to the tax benefits.


I agree. With a 529 you can identify a "trustee" in case something happens to you while your children are still minors. We have set them up for our grandkids and their parents take them over if something happens to us.
Anonymous
Post 10/16/2018 19:59     Subject: Re:How did you set up a trust fund for your child?
It doesn't sound like the OP has a lot of money so I am not sure of the purpose of a trust. If it is for college expenses a 529 makes the most sense due to the tax benefits.
Anonymous
Post 10/16/2018 16:22     Subject: Re:How did you set up a trust fund for your child?
Anonymous wrote:For our grandchildren we set up 529's right after they were born. This was much easier than a trust. For our children my DH and I each set up irrevocable trusts where we are beneficiaries of each other's trust if one of us passes and then eventually the trusts pass to our children. If the money stays in the trusts it is not part of marital property in case of a divorce. They can access the trusts while we are still alive but only if my DH and I approve it because we are each other's trustee. We have assets outside the trusts that we use to provide annual gifts plus if they have real needs (e.g. Medical) there is a wide array of ways for us to help them to allow the trusts to continue to grow for the next generation. This is probably more info then you need but we have spent a good amount of time working on this.


We did something similar. It's very common for any decent estate lawyer. I have family money. If I die, the vast majority of it goes to my kids (who are still little). DH and my brother (who knows how to manage this type of money, DH does not) are co-trustees. If DH remarries, new wife and any new kids get nothing. That's not at all uncommon and he was totally find with it, as I would be.
Anonymous
Post 10/16/2018 16:00     Subject: Re:How did you set up a trust fund for your child?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:For our grandchildren we set up 529's right after they were born. This was much easier than a trust. For our children my DH and I each set up irrevocable trusts where we are beneficiaries of each other's trust if one of us passes and then eventually the trusts pass to our children. If the money stays in the trusts it is not part of marital property in case of a divorce. They can access the trusts while we are still alive but only if my DH and I approve it because we are each other's trustee. We have assets outside the trusts that we use to provide annual gifts plus if they have real needs (e.g. Medical) there is a wide array of ways for us to help them to allow the trusts to continue to grow for the next generation. This is probably more info then you need but we have spent a good amount of time working on this.


Let’s say you have 2 kids. One married young and have 2 children. Second kid not married yet. How do u make sure equal distribution of $$? What is second kid gets married and have kids after both u and DH dies?


We have three and each gets a third regardless of how many children they have or if they are married or single. Each grandchild gets their own 529. All three are now married with kids. If and when DH and I are both gone then what is in the two trusts rolls into three separate trusts with each of our kids being their own trustee. By keeping the money in those trusts it is not part of their marital property.

We do this as well but we have young adult children, no grandchildren (so the equal split among the 3 is obvious).
Anonymous
Post 10/16/2018 15:56     Subject: How did you set up a trust fund for your child?
The term you are looking for is “per stirpes.”
Anonymous
Post 10/16/2018 15:52     Subject: Re:How did you set up a trust fund for your child?
Anonymous wrote:
Anonymous wrote:For our grandchildren we set up 529's right after they were born. This was much easier than a trust. For our children my DH and I each set up irrevocable trusts where we are beneficiaries of each other's trust if one of us passes and then eventually the trusts pass to our children. If the money stays in the trusts it is not part of marital property in case of a divorce. They can access the trusts while we are still alive but only if my DH and I approve it because we are each other's trustee. We have assets outside the trusts that we use to provide annual gifts plus if they have real needs (e.g. Medical) there is a wide array of ways for us to help them to allow the trusts to continue to grow for the next generation. This is probably more info then you need but we have spent a good amount of time working on this.


Let’s say you have 2 kids. One married young and have 2 children. Second kid not married yet. How do u make sure equal distribution of $$? What is second kid gets married and have kids after both u and DH dies?


We have three and each gets a third regardless of how many children they have or if they are married or single. Each grandchild gets their own 529. All three are now married with kids. If and when DH and I are both gone then what is in the two trusts rolls into three separate trusts with each of our kids being their own trustee. By keeping the money in those trusts it is not part of their marital property.
Anonymous
Post 10/16/2018 14:57     Subject: Re:How did you set up a trust fund for your child?
Anonymous wrote:For our grandchildren we set up 529's right after they were born. This was much easier than a trust. For our children my DH and I each set up irrevocable trusts where we are beneficiaries of each other's trust if one of us passes and then eventually the trusts pass to our children. If the money stays in the trusts it is not part of marital property in case of a divorce. They can access the trusts while we are still alive but only if my DH and I approve it because we are each other's trustee. We have assets outside the trusts that we use to provide annual gifts plus if they have real needs (e.g. Medical) there is a wide array of ways for us to help them to allow the trusts to continue to grow for the next generation. This is probably more info then you need but we have spent a good amount of time working on this.


Let’s say you have 2 kids. One married young and have 2 children. Second kid not married yet. How do u make sure equal distribution of $$? What is second kid gets married and have kids after both u and DH dies?
Anonymous
Post 10/16/2018 14:20     Subject: Re:How did you set up a trust fund for your child?
For our grandchildren we set up 529's right after they were born. This was much easier than a trust. For our children my DH and I each set up irrevocable trusts where we are beneficiaries of each other's trust if one of us passes and then eventually the trusts pass to our children. If the money stays in the trusts it is not part of marital property in case of a divorce. They can access the trusts while we are still alive but only if my DH and I approve it because we are each other's trustee. We have assets outside the trusts that we use to provide annual gifts plus if they have real needs (e.g. Medical) there is a wide array of ways for us to help them to allow the trusts to continue to grow for the next generation. This is probably more info then you need but we have spent a good amount of time working on this.
Anonymous
Post 10/16/2018 13:58     Subject: How did you set up a trust fund for your child?
Anonymous wrote:My DH's trust is set up this way - it specifies that spouse is not a beneficiary, and our 2 kids are. His Mom was twice-divorced, so she knew a few things.

Ask around for an attorney who specializes in estate planning in your state.


How is trust paid out? If used to buy house, do u get share of house?
Anonymous
Post 10/16/2018 13:36     Subject: How did you set up a trust fund for your child?
My DH's trust is set up this way - it specifies that spouse is not a beneficiary, and our 2 kids are. His Mom was twice-divorced, so she knew a few things.

Ask around for an attorney who specializes in estate planning in your state.
Anonymous
Post 10/16/2018 13:30     Subject: Re:How did you set up a trust fund for your child?
Anonymous wrote:
Anonymous wrote:Do you mean possible future spouses for your children? Yeah, you rock.


Different poster here: I am a divorce lawyer. I see no problem with this. If I was setting up a trust for my kids with my money, I would absolutely want the money to stay in my family. Does that mean that a future spouse and enjoy some parts of it while married? Yes. Does that mean that I want it to buy a house in 10 years and then in 15 have half of that asset go to a cheating spouse of my adult kid? uh, no.


So how do I do this?
Anonymous
Post 10/16/2018 13:19     Subject: Re:How did you set up a trust fund for your child?
Anonymous wrote:Do you mean possible future spouses for your children? Yeah, you rock.


Different poster here: I am a divorce lawyer. I see no problem with this. If I was setting up a trust for my kids with my money, I would absolutely want the money to stay in my family. Does that mean that a future spouse and enjoy some parts of it while married? Yes. Does that mean that I want it to buy a house in 10 years and then in 15 have half of that asset go to a cheating spouse of my adult kid? uh, no.
Anonymous
Post 10/16/2018 12:46     Subject: Re:How did you set up a trust fund for your child?
Do you mean possible future spouses for your children? Yeah, you rock.
Anonymous
Post 10/16/2018 12:34     Subject: How did you set up a trust fund for your child?
I would like to set one up to protect assets from future inlaws
Anonymous
Post 10/16/2018 12:24     Subject: How did you set up a trust fund for your child?
We're not wealthy but would like to set-up a trust for our child's education instead of a 501.

If you did, how did you do it, which firm or company did you use?