Setting up and managing a trust for children or grandchildren

LIST Code

ES-04-02-00-00

Title

Setting up and managing a trust for children or grandchildren

Definition

This category covers how a person can create a trust to set aside money or property for their children, grandchildren, or other young family members. It includes the difference between common trust types used for this purpose, like revocable and irrevocable trusts, testamentary trusts (created through a will), custodial accounts under UTMA or UGMA, and 529 education savings plans. It covers how to choose a trustee to manage the funds, what rules can be set about when and how beneficiaries receive the money (like at a certain age or for specific purposes like education), and what tax consequences come with different trust structures. This category also covers what happens after a trust is created: how the trustee manages and invests the assets, what reporting and record-keeping is required, how to change or end the trust, and what to do if there is a dispute between the trustee and the beneficiaries or their parents.

Location in LIST