If you’re a guardian or trustee responsible for a minor who has lost a parent, setting up a bereaved minors trust can be a crucial step in safeguarding their financial future. This trust ensures that the minor’s inheritance is protected until they reach adulthood, providing them with financial stability during a potentially challenging time.
In this article, we’ll delve into the essential documents required to establish a bereaved minors trust and explore the benefits it offers.
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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 a Bereaved Minors Trust
- 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.
Essential Documents for Setting Up a Bereaved Minors Trust
- The Will: The most important document is the deceased parent’s will. It should clearly indicate the minor’s entitlement to the inheritance and designate the trustees who will manage the trust.
- Proof of Identity: You’ll need to provide proof of the minor’s identity, such as a birth certificate or passport.
- Proof of Guardianship: If you’re not the minor’s legal guardian, you’ll need to provide documentation confirming your guardianship appointment.
- Trust Deed: This is a legal document that outlines the terms of the trust, including the trust’s purpose, beneficiaries, trustees, and provisions for managing and distributing the assets.
- Investment Policy Statement: This document outlines the investment strategy that the trustees will follow to grow the trust’s assets. It should consider the minor’s risk tolerance, time horizon, and financial goals.
- Tax Returns: If the trust generates income, you’ll need to file tax returns on its behalf.
Additional Documents (Optional)
- Letters of Wishes: The deceased parent may have left letters of wishes expressing their intentions for the trust or their minor child. While these letters are not legally binding, they can provide valuable guidance to the trustees.
- Consent Forms: If the minor is old enough to understand, they may be asked to provide consent for the establishment of the trust.
Choosing a Trustee
Selecting the right trustee is crucial for the success of a bereaved minors trust. The trustee will be responsible for managing the trust’s assets and making decisions in the minor’s best interests. Consider the following factors when choosing a trustee:
- Trustworthiness: The trustee should be someone you can trust to act in the minor’s best interests.
- Financial Knowledge: Having financial knowledge and experience can be beneficial for managing the trust’s assets.
- Time Commitment: The trustee should be willing to devote the necessary time and effort to managing the trust.
Professional Assistance
While it’s possible to set up a bereaved minors trust yourself, seeking professional advice from a solicitor can be beneficial. A solicitor can help you understand the legal complexities involved, draft the necessary documents, and ensure that the trust is established correctly.
Conclusion
Setting up a bereaved minors trust is a valuable step in safeguarding a minor’s financial future. By understanding the essential documents required and choosing a suitable trustee, you can provide your ward with the security and stability they need during a difficult time.
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.