Please trust me ... in your will.

• Author: Bonora, Doris
• Position: Feature: Wills and Estates

[ILLUSTRATION OMITTED]

When making plans for a will, there are so many reasons to use trusts to properly provide for your family. Trusts can be used so perfectly in so many situations.

Often, trusts are misunderstood. They are not complicated vehicles set up by billionaires to fund their over-spoiled children ... although Paris Hilton has made good use of her trust fund to become a celebrity. Not all trust funds result in Paris Hiltons.

A trust is simply taking an asset or a fund of money and putting someone in charge of it. The fund of money is the trust fund. The person in charge is called the "Trustee". The people who are destined to get the money are the beneficiaries.

Trusts for Minor Children

The most simple form of trust are those created for young children. If children receive money under the age of 18, the money must be held in trust and can be paid out for the children's support. If nothing more is said in the will, then the children receive the money at 18. We would not recommend giving large sums of money to children at 18 and thus, we would recommend that the child be permitted to receive money from the trust for post secondary education from the trust. The funds can then be paid out in installments over time. For example, the first payment of one-third can be paid at 25 years of age. The second payment of one-third can be made at 30 and the balance at 35. The idea is that the children have the opportunity to make some mistakes with their first instalment, but then, even if they squander the whole amount, they have five years to think about what they did before they get the next installment. They also learn that if they leave money alone, it grows.

Many people see this as controlling from the grave, but in fact, it is just smart planning so that children can learn how to handle money and do not get into trouble. Money can often attract bad people. An inheritance should be good news and not the source of trouble.

The Problem Child Trust

Trusts can be used to solve problems that people have in their families. If you have a son who has a gambling addiction, it is a bad idea to give him a lump sum of money on your death. The money could be put in a trust so that he can get small sums of money that the trustee can pay directly for rent or food, so that he cannot use the trust funds for gambling. This type of trust can be used for any type of problem such as addictions, or just bad money management.

Trust for Handicapped Child

Of...