estate protection

How Long Does a Trust Last?

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.

  1. A trust can continue if a child or children are minors.

  2. If children are adults but are not mature or responsible to handle a large sum of money at once, the trust can continue.

  3. Many choose to extend the term of a trust to provide divorce protection for the children.

  4. Oftentimes, a trust can continue if the benefit is for young grandchildren.

  5. 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.

  6. 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.

 

 

 

Estate Planning Clients Can't Afford To Lose Financial Assets

From "Fool's School, Beware of Variable Annuities"

From "Fool's School, Beware of Variable Annuities"

Many of our estate planning legal services clients are concerned about their retirement savings and their market risk and potential for financial loss. If your investment portfolio loses 20% of its value, you'll need a subsequent 25% gain just to get back to even. How do you do that when you are no longer working and earning?

Market losses cause many to either reduce their risk - making it harder to get even, or to increase their risk to try to earn more - increasing their risk of losing even more. At 2%, it takes over 11 years to grow back the 25% that you lost in the market.

It certainly appears that the challenge described above means that managing your money in retirement is different and as important as saving money for retirement - managing in retirement demands even more efforts toward protection from loss. Many seniors who engage us to perform estate planning legal services want to prioritize protection rather than potential growth.