Do you have minor children? Have you ever wondered what might happen to them and your property if you and your spouse die? Will they be provided for? Who will take care of them?

Consider a Testamentary Trust as a relatively simple answer to these questions.  Here is how it works.  You and your spouse prepare Wills giving your estate to each other.  The Will then directs that if you are the surviving spouse your property is placed in a Trust created by your Will when you pass away.  This is called a Testamentary Trust.  Your Will selects a trusted adult to be the Trustee who can use the Trust property, which may include Life Insurance proceeds, to provide financial support, maintenance, education and other assistance that you dictate or allow.

When the youngest of your children reaches the age of 18, or 25 or whatever age you choose, the Trust property will be distributed to your children in equal shares.  You can even direct the Trust property to be distributed only in part at certain age increments.  For example, 33% when your child reaches 18, 33% when she reaches 25 and the remainder at age 30.

You should also appoint a trusted relative or friend to act as guardian of your minor children.  This can be the same person you appointed as Trustee or a different person.  Either way, by preparing a Will which includes a Testamentary Trust and Appointment of Guardian, your minor children will be taken care of and have the financial provisions they need.

The diagram included further explains how a Will and Testamentary Trust work together to provide for your minor children should you pass away.  Testamentary Trusts can also be created for disabled children or incapacitated persons.