The Importance of Special Purpose Trusts in Estate Planning
Trusts are a commonly used tool in estate planning’s tool box. Traditionally, trusts have been primarily used to delay the time for distributions of assets to young children. These trusts provide for staggered distributions of principal to children at certain ages, such as one-third principal distributions at ages 30, 35 and 40, with discretion given to trustees to make earlier distributions to a child for his or her health, education, maintenance and support purposes.
Trusts can also be used to better ensure that assets remain in a child’s bloodline and to provide for children or other family member with unique needs. Special purpose trusts are frequently used…
As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.
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