Estate planning ensures your heirs will be provided for now and after you’re gone. If you’re in a position to set up a trust for minor children or grandchildren, you’ll make their transition to adulthood easier, ensuring they have funds for personal, professional, and academic goals. To prevent discrepancies later, it’s best to work closely with an attorney when forming the trust. The following guide will give you a better idea of what the process entails. 

How to Arrange a Trust for Children

Decide What Type of Trust to Form

When estate planning, first decide what trust is best suited for your needs. If you plan to set aside money for several descendants, for example, consider arranging a family pot trust. With this option, all assets are covered under the same legal entity. On the other hand, if you only plan to provide for a few heirs, set up separate trusts for each individual.

Choose a Responsible, Objective Trustee

A trust includes stipulations on how the funds should be used. A trustee is appointed to the estate to manage the assets and ensure they’re distributed according to your wishes. The trustee should put all personal feelings aside and objectively represent the best interests of the trust, so keep this in mind when choosing a person for the job. If you’re uncertain whether family members can be unbiased, you could appoint a corporate trustee, which is typically a bank or financial services firm, to control the allocation of funds. 

Decide When Funds Should Be Released

The trust should include clear language regarding when beneficiaries can withdraw funds. An estate planning lawyer will work with you to determine an appropriate timeline. This typically involves allowing access to funds when the child reaches a certain age. You could also request funds be distributed when heirs need money for specific purposes, such as buying a home, leasing a car, or paying for college.

To make sure your wills and trusts are upheld in a court of law, contact the legal experts at Estep & Estep in Tazewell, TN. The lawyers have experience assisting clients throughout Claiborne County with estate planning, which means they’ll make sure you avoid common mistakes so nothing falls through the cracks. To schedule a consultation, call (423) 626-3525. Visit the law firm online for a closer look at their practice areas.