If you live in Idaho and need a Trust or want to learn more about Trusts, Meridian Lawyer Jared W. Sommer is here to answer your questions and help you with all your Estate Planning and Trust needs. Please read our FAQ below or call Attorney Jared W. Sommer at (208) 440-8173 or click here to set up a free initial consultation.
WHAT IS A TRUST?
The variety of trusts and the purposes for which they are created are so complex that trusts are difficult to define. Trusts can serve many purposes, they can be used to protect assets from creditors, to minimize tax liabilities, to manage assets for minors or others that can’t handle their own financial affairs, to provide for family members after death or for charitable purposes, to name only a few examples. Speaking generally, in Idaho, the general process is for an attorney to create a trust by drafting a trust document. A trust document has similarities to a will and a contract. A trust document sets forth the purpose of the trust, names the trustee or trustees of the trust, provides rules the trustee must follow to preserve, protect, manage or distribute the assets of the trust and names the beneficiaries of the trust. If you think a trust might be right for you, call experienced Idaho trust attorney Jared W. Sommer at (208) 440-8173 or click here to schedule a free initial consultation.
MOST COMMON TYPES OF TRUSTS
The types of trusts that can be created and the purposes they serve is limited only by your imagination. In Idaho, some common examples of reasons to set up a trust include.
1. MESH Trust for Minor Children
If you have minor children, the best thing you can do to provide for your children in the event of your untimely passing is to set up a M.E.S.H Trust. Most of us think we don’t have any money to justify a trust, however, often times you may have a home with significant equity or that you own outright, you may have life insurance, accidental death benefits and employer payable on death benefits that your employer provides for you and you don’t even know you have. MESH trusts are often created on paper but are not funded until the decedent’s death. Funding generally comes from life insurance and a pour over will (a will that transfers all your assets to the trust upon your death). A MESH trust holds all your assets in a trust for your minor children, which property is often funded through life insurance proceeds and a trustee is appointed to preserve, manage and distribute the assets of the trust for the benefit of your children. A MESH trust instructs the trustee to only use the funds for specific purposes defined in the trust, namely those related to Maintenance, Education, Shelter and Health. MESH trusts protect the assets of the estate from waste by limiting the purposes for which trust assets can be used to those that will provide for the basic health, support and education of your children. These limitations maximize the assets of estate to provide for maximum stability and support for your children. It also protects trust assets from misuse by guardians or family members. In most cases in Idaho, parents of minor children should create a MESH trust. To set up a free initial consultation with experienced trust attorney Jared W. Sommer call (208) 440-8173 or click here to set up an appointment.
2. To Delay Distribution to Adult Children
You may have children that are legal adults but who may not be sophisticated or mature enough to inherit large sums or money. In such cases, you can create a trust to make one or more distributions when the children reach a certain age. You can still include in the trust provisions similar to those in a MESH trust which can give the trustee discretion to distribute funds from the trust for college related and basic health and living expenses. Based on the experience or attorney Jared W. Sommer, if you give an 18 year old $50,000.00, they buy a car, if you give a 30 year old $50,000.00, they put a down payment on a home. To set up a free initial consultation with experienced trust attorney Jared W. Sommer call (208) 440-8173 or click here.
If You Have Young Adult Children that are Not Ready to Inherit a Large Sum of Money, You May Need a Trust – Even where you’ve got good children, there are very few individuals that are under 25 years of age that are responsible and mature enough to inherit a large sum of money. Those that do often make impulsive purchases and will run out of money soon. In those cases, it may make sense to stager or delay distribution of the assets of the estate to them over time.