How Long Does a Trust Last?
Many people often wonder how long a trust should last; however, a trust term depends on each family’s circumstances.
In a typical “avoid probate” revocable living trust which is set up by a married couple with responsible, mature adult children, the trust will last until both spouses pass away. At that time, the Successor Trustee will terminate the trust and disburse the assets in the trust to the beneficiaries. However, in many circumstances, a trust will continue after both spouses pass away.
A trust can continue if a child or children are minors.
If children are adults but are not mature or responsible to handle a large sum of money at once, the trust can continue.
Many choose to extend the term of a trust to provide divorce protection for the children.
Oftentimes, a trust can continue if the benefit is for young grandchildren.
Individuals with a special needs child that is receiving government benefits may choose to extend the term of a trust to protect the government benefits.
A trust can continue if there is property in the family that the couple wants to keep in the family.
There are many ways to set up a trust term. It can last for a lifetime or continue for many years. It is important to customize a trust according to your wishes.