Trust fund usage

Timothy Clement Burkart

First, be careful about your choice of trustee - you want someone who you are confident knows and will carry out your wishes - the trust document should then serve as a written reminder of those wishes. Second, give careful thought to the trustee's distribution and administrative powers to ensure your wishes are being fulfilled. Third, make sure the document requires the trustee to account at least annually to the beneficiary and/or some other capable adult. It is also a good idea to give someone or group of someones the power to replace the trustee. People and organizations can change over time and the person or entity you choose as trustee today may not be appropriate in the future so providing for an efficient mechanism to replace the trustee makes good sense. Finally, contact a competent trust and estate attorney to help you. Creating a trust has many traps for the unwary and what you pay for good advice now, may save many times that amount later.

Phillip Gustavo Day

From a legal perspective, there are a number of things to do when drafting the trust. 1.)Trustee selection - make sure you trust the successor trustee, 2.) distribution of assets - are the assets distributed outright or held until age(s) of maturity, 3.) allocation of assets - are you giving the assets to loved ones, 4.) appoint a trust protector to make sure that the trust can be amended post death for changes in tax laws or other unforeseeable changes. All of these protections are not full proof but proper drafting can really make a big difference in making sure that the assets are properly administered. But more importantly and from a practical perspective, open communication with your beneficiaries during your life will provide the greatest assurance that everyone is on the same page. Speak to your family at one time, all together, maybe at a reunion or thanksgiving, and tell them what you have done. It's a tough talk but it has to be done so that no one fights later. Also, it will provide a check and balance if someone starts pulling a few stunts because everyone know what is supposed to happen, and after death, if that something doesn't happen, the trustee will have to answer to the family. At the end of the day, consult with an experienced estate planning attorney that can properly draft your trust and give you guidance. I also highly recommend a book by the author Henry Abts, entitled "The Living Trust". A great book on the benefits of a trust and what you should expect in a properly drafted trust. It won't show you how to prepare a trust, but it more importantly shows you what you should expect. Hope this helps.