If you’re a parent concerned about your child’s financial future in the event of your untimely passing, a bereaved minors trust can offer peace of mind. This legal arrangement ensures that your child’s inheritance is protected and managed responsibly until they reach adulthood.
In this article, we’ll explore how you can set up a bereaved minors trust in your will and the benefits it provides.
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Understanding Bereaved Minors Trusts
A bereaved minors trust is a legal arrangement that holds and manages assets on behalf of a minor who has lost a parent. The trust’s primary goal is to preserve and grow the minor’s inheritance, ensuring that it’s available to them when they reach adulthood.
Key Benefits of Setting Up a Bereaved Minors Trust in Your Will
- Protection from Creditor Claims: Assets held in a trust are generally shielded from creditors, preventing them from being seized to satisfy debts.
- Preservation of Inheritance: A trust can help prevent the minor’s inheritance from being squandered or mismanaged.
- Flexibility in Distribution: The trust’s terms can be tailored to meet the minor’s specific needs, allowing for controlled and phased distributions.
- Professional Management: If desired, a professional trustee can be appointed to manage the trust’s assets, ensuring that they are invested and managed responsibly.
Setting Up a Bereaved Minors Trust in Your Will
To establish a bereaved minors trust in your will, you’ll need to include specific provisions that clearly outline your intentions. Here’s what you should consider:
- Designation of Beneficiaries: Clearly identify your minor child as the beneficiary of the trust.
- Appointment of Trustees: Choose one or more individuals or entities to serve as trustees. The trustees will be responsible for managing the trust’s assets and making decisions in your child’s best interests.
- Trust Property: Specify the assets that you want to be included in the trust. This could include cash, investments, real estate, or other valuable possessions.
- Trust Terms: Outline the terms of the trust, such as when the trust will terminate, how the assets will be distributed, and any specific instructions for the trustees.
Example Will Provision
“I hereby establish a bereaved minors trust for the benefit of [child’s name]. The following assets shall be transferred to the trust: [list of assets]. I appoint [trustee’s name] as the trustee of this trust. The trustee shall hold and manage the trust assets for the benefit of [child’s name] until they reach the age of [age]. The trustee shall distribute the trust assets to [child’s name] upon their reaching the age of [age].”
Important Considerations
- Choice of Trustees: Carefully consider the individuals or entities you appoint as trustees. They should be trustworthy, financially responsible, and capable of managing the trust’s assets.
- Trust Terms: Tailor the trust’s terms to your child’s specific needs and circumstances. Consider factors such as their age, financial situation, and future goals.
- Professional Advice: Consulting with an estate planning attorney can help ensure that your will accurately reflects your intentions and complies with all legal requirements.
Additional Considerations
- Contingency Planning: Consider what will happen if your child reaches adulthood before the trust terminates or if they become incapacitated. You may want to include provisions in your will to address these scenarios.
- Tax Implications: Be aware of the potential tax implications of setting up a bereaved minors trust. Consult with a tax professional for guidance.
Conclusion
Setting up a bereaved minors trust in your will can provide your child with financial security and peace of mind. By carefully considering the key elements outlined in this article, you can create a trust that will benefit your child for years to come.
How we can help
We have a proven track-record of helping clients create Trusts. We are a multidisciplinary firm and have all the expertise inhouse to satisfy the most exacting requirements of our clients. We will guide you through all the necessary legal due diligence in a comprehensive and timely manner. We firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.
How to Contact Our Wills and Probate Solicitors
It is important for you to be well informed about the issues and possible implications of creating a Trust. However, expert legal support is crucial in terms of ensuring your wishes are met as you would want them to be.
To speak to our Wills and Probate solicitors today, simply call us on 0345 901 0445, or click here to make a free enquiry. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.
Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.
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