This month on the blog, Morton Elder Law is dedicating itself to all-things related to Estate Planning. Thoughtful planning is the only way to ensure your assets are going where you would like them to go, following your death.

A Beneficiary Controlled Trust might be the best option for you and your loved ones. This beneficiary controlled trust gives the trustee the ability to manage trust assets with extraordinary control.

Curious to know more? Read on.

What is a Beneficiary Controlled Trust?

While it sounds complicated, the concept of a beneficiary controlled trust is actually pretty simple. It is a trust in which the primary beneficiary of the trust is also the trustee or co-trustee. In short, the individual gaining the inherited assets is also in control of the assets.

The above stipulation includes the ability to eliminate potential interferences by more distant beneficiaries. Because the trustee is given these rights, the more remote beneficiaries are more likely not to interfere, as their rights to any inheritance could be eliminated in its entirety.

It’s important to note that this trust is significantly different from the classic trust format. A classic trust format typically pays a beneficiary a portion of the assets at specific ages until the trust has dried up. Generally, it doesn’t end during the beneficiary’s lifetime.

State to State

Keep in mind, trustee laws vary state to state. So be sure to read up on your state’s guidelines.

You are able to create a trust according to the law of a different state than the one with which you currently reside, but an inheriting trustee must live there. For example, a person following by Alaskan trustee laws will need to have a trustee who is currently living in Alaska.

Trust Designs

Once it’s decided that the Beneficiary Controlled Trust is the best way to go, there are a number of trust designs that are possible to put it into place. Consulting with a professional is the best way to guarantee that everything required by law is as it should be.

Contact Morton Elder Law for more information!

~ Ronald Morton