I am often asked the question, what do I need to consider when daftng a trust. Below I have listed the top 3 items I think are important when creating a trust.
First you need to consider the beneficiaries. What are their ages and their spending habits? Are they a minor or an adult? They will have very different needs and you will have different decisions to make for different situations. For a minor, you need to provide your spouse or the minor directly with income as well as a way to pay for college. If some of them have been to college and others have not you need to determine when to make distributions from the trust and how long you keep the money in, and trust.
Next you have to determine how many distributions you make from the trust. I suggest to clients that they make more than one but not more than three. The reasoning behind this is that two gives them a second chance and handling the money. However if they have not learned their lesson by the time they receive the third distribution they probably are a lost cause.
The final main decision are the trustees. While corporate trustees such as banks provide for a knowledgeable trustee, you don't know who you're going to get when your trust actually comes into existence. A private trustee, although less expensive, may not know what to do.
These are the main decisions you need to make. Although there are many more decisions that have to be made. You should consult with an attorney before drafting any trust documents.