Friday, April 3rd, Attorney, Steven M. Berger talks about standby trusts.
This is a section in your Will or Trust for beneficiaries that are either underage or incapacitated beneficiaries. When parents are planning to give everything to their children, but a child predeceases them then this trust can be created and ran to age 25 without having to go through Court.
When a beneficiary we weren’t planning for becomes incapacitated, we can use this trust to create a special needs trust.
Standby trusts in a Will can make things more complicated, but without these provisions, opportunities like we described wouldn’t be possible.
The personal representative is usually named as the trustee under the Will which would come up if something unexpected happens such as a beneficiary becoming incapacitated.
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