If you’re a parent or guardian of a minor child, it’s crucial to consider the potential financial implications of your passing. A Bereaved Minors Trust, also known as a Minor’s Trust or a Children’s Trust, can provide a safety net for your child’s financial future. By setting up such a trust, you can ensure that your child’s inheritance is managed responsibly and used for their benefit.
Please click here to find out more about our Wills, Trusts and Lasting Power of Attorney Services.
Free Initial Telephone Discussion
For a free initial discussion on how we can help you deal with the legal implications of creating a Trust, get in touch with us today. We are also experienced in dealing with all aspects of Wills and Probate and we will review your situation and discuss the options open to you in a clear and approachable manner. Early expert legal assistance can help ensure you avoid the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or click here to make a free enquiry and a member of the team will get back to you.
What is a Bereaved Minors Trust?
A Bereaved Minors Trust is a legal arrangement that allows you to appoint trustees to manage your child’s inheritance until they reach a specified age, typically 18 or 25. The trustees have a fiduciary duty to act in the best interests of the child and use the trust funds solely for their benefit.
Why Set Up a Bereaved Minors Trust?
There are several compelling reasons to consider establishing a Bereaved Minors Trust:
- Protection from Immature Decision-Making: By placing your child’s inheritance in a trust, you can safeguard their funds from impulsive spending or poor investment choices that they might make if they had access to the money at a young age.
- Financial Stability: A trust can provide your child with a steady income stream, ensuring that they have the financial means to meet their needs and pursue their goals.
- Flexibility: You can customize the terms of the trust to suit your child’s specific circumstances. For example, you can specify how the funds should be used, when the child should receive the money, and who should be the trustees.
- Estate Tax Planning: In some cases, a Bereaved Minors Trust can help reduce your estate tax liability.
Key Considerations When Setting Up a Bereaved Minors Trust
Before deciding to set up a Bereaved Minors Trust, there are several factors to consider:
- The Age of Your Child: The age of your child will influence the terms of the trust. If your child is very young, you may want to appoint a professional trustee to manage the funds until they are older.
- The Amount of the Inheritance: The size of your child’s inheritance will also affect the trust’s structure. Larger amounts may require more complex arrangements.
- Your Child’s Needs and Goals: Consider your child’s future needs and goals when designing the trust. For example, if you want to ensure that your child has the funds to attend college, you can specify that the trust money can only be used for educational expenses.
- Trustee Selection: Choosing the right trustees is crucial. They will have significant control over your child’s financial future. Consider appointing individuals who are trustworthy, financially responsible, and knowledgeable about financial matters.
The Trust Creation Process
Setting up a Bereaved Minors Trust involves several steps:
- Consultation with a Solicitor: It’s essential to seek legal advice from a qualified solicitor who specializes in estate planning and trusts. They can help you understand the complexities of trust law and ensure that the trust is properly structured.
- Drafting the Trust Document: The solicitor will draft a trust document that outlines the terms of the trust, including who the trustees are, how the funds will be managed, and when your child will receive the money.
- Funding the Trust: Once the trust document is finalized, you can fund the trust by transferring assets to the trustees. These assets can include cash, investments, property, or other valuable items.
- Notifying Beneficiaries: Inform your child’s guardians or other interested parties about the existence of the trust and its terms.
- Ongoing Review: It’s important to review the trust periodically to ensure that it remains appropriate for your child’s changing circumstances.
Blackstone Solicitors: Your Trusted Partner
At Blackstone Solicitors, we understand the importance of protecting your child’s financial future. Our experienced lawyers can guide you through the process of setting up a Bereaved Minors Trust, ensuring that it is tailored to your specific needs and goals.
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.
Comments are closed.
