Children's Trusts

pawns.jpg (6220 bytes) CHILD'S TRUST:
Create money for your child's education on a tax-deferred basis.

May assist in building child's future estate.

The Child's Trust, an irrevocable, inter vivos trust.

Specific Purpose(s): To develop funds for the health, welfare and happiness of a specific child; to provide for the child's education; to purchase items not generally in a family's budget such as expensive musical instruments, sports equipment required for certain sports activities; child care when said child care is not provided by a working parent's company. There is no tax liability if the "governing instrument" so stipulates until funds are paid directly to Miss Ann Doe or Mr. Felix Doe. Grants and scholarships may be made to applicants without incurring a tax liability.

Special Provisions: The creator of this trust drafts a "contract" which becomes the "governing instrument" of the trust. This "governing instrument" is otherwise known as the indenture or the contract agreement. If the specific provisions are written in the "governing instrument" then those provisions apply. If there is no provision covering a certain circumstance then the statutes apply. See §§ 2503 (b), 2503 ©) in Title 26, the Internal Revenue Code describing a child's trust.

Trustee: The Board of Trustees may consist of one person or as many as the creators may desire. Lord & Carter recommends from 3 - 5 members on the board of trustees. The signing power for purposes of banking transactions may be operable with one signature or may require two signatures as required by the "governing instrument". The trustee may appoint a manager to fulfill certain accounting duties. In order to maintain the trust as irrevocable there must be an unrelated trustee; an adverse trustee, one who has a small financial interest in the trust estate, and a third trustee who may be one of several beneficiaries. The sole beneficiary may not be the sole trustee.

Beneficiaries: In FDIC insured banks accounts are insured up to $100,000; however, trust accounts are insured up to $100,000 per beneficiary as long as the beneficiaries are registered with the trustee.

If you would like more information, please fill out the following form.

FIRST NAME:

LAST NAME:

E-MAIL ADDRESS:

ADDRESS:

CITY: STATE: ZIP

HOME PHONE:

WORK PHONE:

OCCUPATION:

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