Ridgewood Testamentary Trusts Attorneys

Creating a Trust Fund for Minor Children or People With Disabilities

A testamentary trust is a trust included in a will that starts to function when the will's testator (the person who created the will) passes away. Testamentary trusts are easy to form and are very effective estate planning tools.

Michael A. Manna & Associates helps clients form testamentary trusts to:

• Provide for minor children and young adults without requiring expensive bonds or court holds
• Prevent a minor or young adult from foolishly spending trust money
• Keep a disabled person on Medicaid while providing extra financial care for them

Minor Support Trust/Minor's Trust

Minors cannot inherit assets without a substantial expense and inconvenience. In most cases, they must have a court-ordered financial guardian in place. Once the minors are 18 years old, the assets become their own. An 18-year old with a lot of money at his or her disposal is a scary thought. So is the idea of having to post expensive bonds in order to allow the young adult to access his or her trust money. Creating a trust fund for minor children through a trust in a will can help you avoid these pitfalls while providing for your loved ones.

A minor support trust can be managed by anyone you choose, called the "trustee." Once you pass away, the trustee can invest your money until the child reaches the age of financial maturity (an age of your choosing, for example, 25 years old). During that time, your child will have access to the assets, but must justify to the trustee the reason for using those assets, such as for food, clothing, shelter, medical expenses and education. At the age specified (such as 25 years old), your child will have outright and free access to the trust assets.

If you are a grandparent, you can also create a support trust for your minor grandchildren. Should your children pass away before you, the money will go to your minor grandchildren through the trust.

Supplemental Benefits Trust

A supplemental benefits trust is similar to a minor support trust but is used for persons with disabilities. The last thing that you want to do is make a person with a disability wealthy — to do so would potentially cut off their access to government programs such as Medicaid and Supplemental Security Income (SSI). How, then, can you give them an inheritance without making them wealthy?

A supplemental benefits trust is a trust included in a will that is created when you pass away. It nominates a family member or other loved one as a trustee to take care of your disabled relative. The trustee can then use the trust to supplement — rather than supplant — the money that your disabled loved one gets from Medicaid or other government programs.

Contact a Ridgewood and Pearl River Testamentary Trusts Lawyer

For more than 30 years, our law firm has helped clients meet their estate planning goals. If you are interested in learning more about minor support trusts or supplemental benefits trusts, do not hesitate to get in touch with us.

You and your family are important to us.