MANAGEMENT OF A BENEFICIARY’S TRUST
A trust is helpful if your intended beneficiary is a minor or otherwise not suited to manage his or her own inheritance or if you wish to exercise some degree of control over property you are leaving to someone else.
If you leave assets directly to a minor, typically the court will need to appoint a guardian to manage the property.The guardian will need to file accountings with the court, pay fees to court based on the value of the assets. By law, the guardianship will end at age eighteen. Most parents and grandparents understand that a typical eighteen year old is not yet mature enough to own significant assets outright.
If you have intended beneficiaries who are adults but are not suitable to manage their inheritance, a trust can be established to manage the property for the lifetime of the beneficiary or until the beneficiary reaches a more appropriate age.
If you want to leave assets for the benefit of another but want to retain some control over the disposition of those assets upon the beneficiary’s death, a trust can help you retain that control.
Upon your death, your Will is probate by the Clerk of Court and becomes part of the public files. Trusts generally do not become part of the public records.
A trust created during your lifetime may assist with the management of your assets if you become incapacitated, especially if you wish to have the assistance of a trust company.