I’m seeking advice on how to establish a family trust.
My mom is set to inherit around $400,000 soon from her parents. She wants to create a new trust with this inheritance and make my brother and me the primary beneficiaries. Both of us are financially stable and agree to let the funds grow for about 10 years (targeting at least $1 million) before using a portion while keeping the rest invested for future generations.
Are there standard structures for trusts like this? What questions should we consider before setting it up? My grandparents’ will is already in place, and their estate will be divided among my mom and her siblings. Any input is appreciated as we navigate this process.
Your mom needs to consult an estate planning attorney to create the trust. They can guide her on how to structure it properly. This isn’t something to DIY.
RyanEdwards said:
Your mom needs to consult an estate planning attorney to create the trust. They can guide her on how to structure it properly. This isn’t something to DIY.
She wants my brother and me to weigh in on the trust structure. What kind of questions should we prepare for when speaking to an estate planner?
This isn’t a DIY project. Your mom should work with an attorney to ensure the trust is set up correctly. Ideally, the planning should start as soon as she receives her inheritance.
Martin said:
This isn’t a DIY project. Your mom should work with an attorney to ensure the trust is set up correctly. Ideally, the planning should start as soon as she receives her inheritance.
The grandparents have a will, and their estate is set to go through probate. Once my mom receives her share, she wants to establish the trust. Should she wait until after the estate settles to work with an attorney?
@Tara
Yes, your mom can’t place funds in the trust until they’re in her possession. It’s best to plan ahead, so she’s ready to act once the inheritance is finalized.
Working with an estate planning attorney is key. Each state has different laws, and a professional can guide you through all the factors that might not be obvious. My partner and I found it invaluable when we set up our estate plan.
Maeve said:
Your mom should consult a qualified estate planning attorney as soon as she receives the inheritance. They can help set up the trust properly.
I assume this planning would happen after the inheritance is received. Is there anything we should do beforehand to prepare?
@Tara
Start by discussing the goals for the trust, like who the beneficiaries will be, how long the funds should grow, and under what circumstances distributions should occur. The attorney will guide you through the rest.
Your mom should speak with an estate planner to determine if a trust is necessary. If she’s content managing the funds herself, she might just invest the money and include you in her will instead of creating a trust. A professional can help decide the best approach.
@Clovis
I think she’s leaning toward a trust to ensure the money grows for future generations. She’s happy with her current financial situation and just wants to set us up for long-term success.
Setting up a trust sounds like a great idea for long-term planning. Your mom can include stipulations like not accessing the funds until they reach a certain value or after a specific time frame. Be sure to consult with an estate planning attorney to avoid gift tax complications and ensure everything is structured correctly.
If your grandparents’ estate is still being handled, it might be worth discussing re-establishing a trust through their will. This would simplify the process and avoid probate complications.
@June
Thank you, this is really helpful. My mom and dad are both financially stable and focused on making sure this inheritance supports the family in the long run.