But, often clients hear me mention a trust for their children and they immediately think of Paris Hilton or some other ne’er do well child living off their inheritance.  “Oh, no, we don’t need a trust for her, we don’t have that much.” Or simply “no, I don’t think we want that.”

It’s at that point that we slow down and I remember how I feel when my computer guy starts talking over my head, and I go back to the Trust 101 talk.  I explain how a minor child cannot inherit property in Massachusetts, and that by naming someone (the trustee) to hold the property for the child (the beneficiary) the family can avoid having to have the Courts get involved and the accompanying time and expense that brings with it.

Depending on the family’s wishes and their budget, it may be that the trust language can be crafted into the Will to make sure that the child’s inheritance is protected when necessary and accessible when necessary.  In other situations, a more complex special needs trust may need to be drafted to make sure that vital benefits are not lost.  Most families will fall somewhere in between.

Having a trust does not mean that you are rich or stuck up or that your children will become reality TV stars. It just means that you are protecting your children and making sure that the inheritance you leave them is handled by the people you trust with the privacy you want.

Many times the terms used in the divorce agreement regarding the trust are not clear – for instance if "minor children" is used in one place and "emancipated children" is used in another, which was meant?  If it refers to a providing for funds for a "secondary education" does this mean only at an accredited school, or would a trade school qualify?  Trying to interpret the answers to these questions after the divorce is final so that the trust can be drafted to comply with the agreement can be time consuming and costly.  In addition, if the other party disagrees with how the trust was drafted based on vague language in the divorce agreement, that can lead to more costs and time with the divorce attorneys hashing out what their clients meant in the agreement, and the estate planning attorney having to redraft the trust. 

Checking in with an estate planning attorney when you are including language about a trust in a divorce agreement can save you and your client a lot of time and hassle, and the estate planning attorney might bring up some issues you hadn’t thought of with regard to the trust. 

Your church may have several different locations where the funds can be distributed, and if you want your money to stay in your local parish, you’ll need to make sure it isn’t left to the state or national branch.  You may even be able to specify that you’d like it to be used for a certain purpose at your local level – such as religious education, upkeep of the facilities or other special uses.   Likewise, the Salvation Army and similar charities have both local and national branches.  If you don’t specify where you’d like the funds to go, they very often end up at the national level, even if you wanted them to stay in your community.  If you are leaving funds to a hospital, which are sometimes considered charitable organizations, you can also specify that the funds be used for a particular purpose.   

If you are unsure of your options, you can contact the charity or religious organization yourself to speak to someone in their planned giving department, or you can ask your attorney for assistance.  Many times, the attorney has dealt with bequests to that charity before, and can provide you with some guidance in determining how you’d like the funds to be used.  And, after you’ve made your decision, your attorney will coordinate with the charity to ensure that the appropriate wording is used in your estate planning documents.

When discussing charitable giving with your family, and ultimately with your attorney, make sure you specify where you’d like the funds to be left, and how you’d like them to be used.  This way, you know your wishes will be carried out and that your funds will be used the way you intended. 

While advice from a book does not replace a relationship with an attorney, it can certainly help you figure out what you want your plan to look like, and help you understand some of the things you’ll be talking about with your attorney.  And, the book is written with general advice that is not specific to any one state, so keep in that some terms or processes described in the book might be slightly different in your state.

If one of your New Year’s Resolutions is to get your estate plan in order, this book can be helpful in getting you started, but you still need to be the one to actually call your attorney and make the appointment.