How to create a trust fund?

[mistysue]

If I want to make a trust fund for one of my children, does anybody have suggestions for who I should be talking to or where I should look so I know what I'm doing? I think for now I'm mostly looking for online sources of information, but wondering if anybody knows a good place to be looking rather than random search responses.
I am sort of clueless, but I think what I want is a trust fund. We want to set money aside that only a certain amount per year could come out after a certain age.

 

[3boymthr]

My parents have their land etc in a trust. When they looked into it they realized there is too much to a trust to try and set it up on your own. There is a lot to factor in and the laws vary by state and by what you are trying to do, how close the setting up of the trust happens to certain life events, etc. They consulted both a lawyer and a financial planner. You want to make sure both are well versed in these types of things. I believe their regular lawyer referred them to one who was a specialist in estate planning.

 

[Riverhill]

Call an attorney that handles trusts. First you need to create the trust and lay out how you want the money disbursed. Then you can fund the trust and meet with an investment specialist who can invest the trust money so it continues to grow until the child reaches the preset ages. Be aware about how much money the investment person charges to handle or invest the money.

 

[mistysue]

Thanks, that's sort of a bummer, I was hoping this was the sort of thing we could just research and do.
I guess it's time to find more professionals to pay for something. Maybe I should have taken that legal insurance during open enrollment this year!

 

[NeverlandClub23]

I'm a paralegal for an Estate Planning law firm. Trusts are something you will want to consult a lawyer about. Fortunately, there are a lot of lawyers who will meet with you for free, discuss your situation, and tell you how much it will cost to move forward and prepare a trust (with no obligation to do so). You're then free to make whatever decision you feel is best.

 

[akcire]

If I want to make a trust fund for one of my children, does anybody have suggestions for who I should be talking to or where I should look so I know what I'm doing? I think for now I'm mostly looking for online sources of information, but wondering if anybody knows a good place to be looking rather than random search responses.
I am sort of clueless, but I think what I want is a trust fund. We want to set money aside that only a certain amount per year could come out after a certain age.

You mentioned wanting to set up a trust for one child, but your sig shows you have three. Are you trying to set up a special needs trust? If so you will want to find a trust lawyer with experience in the area. I also know some groups provide discounted/free legal services for special needs trusts.

 

[holden]

yes, meet with a lawyer (estate planner) and financial adviser. There is a lot more to consider than just "setting up a trust." We didn't realize how much was involved - tax implications, etc.

 

[ssawka]

You mentioned wanting to set up a trust for one child, but your sig shows you have three. Are you trying to set up a special needs trust? If so you will want to find a trust lawyer with experience in the area. I also know some groups provide discounted/free legal services for special needs trusts.

ITA! I was also going to ask if this was a special needs trust. If it is, I would not try to do it on my own. Seek out a lawyer! There is very specific wording that must be used. If this is a special needs trust, seek out recommendations from support groups in your area. The Internet is not a good place to seek out recommendations since laws vary from state to state. Also, get a lawyer that will set up an active trust, not one that is created after the parents are deceased. The reason for this is so that if anyone (grandparents, etc.) want to leave anything to your child, it should be left to the trust and not the child. Basically, the whole purpose of a special needs trust is to leave the child with no assets directly in their name. Make sure family members are aware of this!

 

[mm1971]

Thanks, that's sort of a bummer, I was hoping this was the sort of thing we could just research and do.
I guess it's time to find more professionals to pay for something. Maybe I should have taken that legal insurance during open enrollment this year!

Most good trust attorneys will provide a free consultation to make sure it is what you want. In the consultation, they will explain the different types of trusts and how they work. There is no obligation, but if you decide to move forward, there is a cost to the process. We have a trust for our children and I think it cost about $250-300 for the service. This was about 5-6 years ago. We also set up a living trust for certain assets like the house.

Good Luck!

 

[BuzznBelle'smom]

You definitely need to see an estate attorney. The few hundred dollars you spend are nothing when weighed against the peace of mind, knowing that it's been done properly and legally. Visit one and explain what you'd like to do.

Trusts don't have to be hugely expensive, and aren't just for the Thurston Howells of the world. You should also think about if you want to let your children know--now or later--why you went this route.