If you’re someone who doesn’t have children of their own, you may wonder whether it’s possible to leave inheritances for your nieces and nephews during estate planning. In Maryland, it’s common for people to have close relationships with their nieces and nephews and want to ensure they receive some of their assets when they pass away. However, it’s possible to leave assets with them through a last will, creating a trust and naming them as beneficiaries, which will prove more advantageous in the future. This is because it can help avoid the probate process. If you’re considering establishing a trust fund, connect with a knowledgeable Montgomery County Trust Attorney who can help protect your interests at every turn. Please continue reading to learn how to create trust for your nieces and nephews.
How Do I Set Up a Trust Fund For My Niece or Nephew?
Firstly, a trust fund is a legal entity that contains assets or property on behalf of a person. Trust funds are managed by a trustee responsible for administering the trust. Essentially, they have a fiduciary duty to the trust’s beneficiaries. Trusts can be especially beneficial for minor children, including nieces and nephews, as trust accounts are not subject to the probate court, allowing the assets being held to be distributed according to the terms stipulated by the grantor. Before making any decisions on the type of trust to set up, you should enlist the help of an experienced Montgomery County trust attorney who can help you make an informed decision that best suits your needs.
If you’re creating a trust fund for your niece or nephew, it’s usually best to use a revocable living trust. This is because a revocable trust can be modified or terminated by the grantor at any time, as long as they are of sound mind to handle their affairs. However, once the grantor passes away, the trust account transforms into an irrevocable trust, meaning the terms cannot be changed. Establishing a revocable trust and naming your nieces and nephews as beneficiaries allows you to provide them with the funds you desire, but in a manner that suits them and their parents better. It is crucial to take the necessary steps to ensure you don’t undermine your parent’s authority should they come into money in their own name at a young age. Most young people are not mature enough to responsibly manage their finances.
If you’re considering creating a trust fund for your nieces and nephews, please don’t hesitate to contact an adept attorney from the legal team at JD Katz, who can help you avoid the time-consuming and expensive probate process.
