How Long Can a Trust Fund Be Maintained?

You may have thought to leave your beneficiaries’ inheritances in trusts instead of in your last will and testament so that they may reap a bigger payout. However, you may be tentative in giving them access to these funds straightaway, as they may have never handled such a large amount of money before. In other words, you may want to hold onto the funds within their trust for as long as possible before surrendering it to them. Well, continue reading to learn how long a trust fund can be maintained and how one of the experienced Butler County trust attorneys at Heritage Elder Law & Estate Planning, LLC can help you get a handle on this estate planning tool.

Is there a limit to how long a trust fund can be maintained?

The short answer is that the amount of time you can maintain control over a trust depends on the trust type you choose to establish. This is because it may all rely on the terms and conditions within your specific trust document. More specific examples read as follows:

• A revocable trust: with this, you may maintain control over regaining or retaining the funds placed in the trust throughout the rest of your lifetime.
• A charitable trust: with this, you may maintain control over the funds placed in the trust throughout the rest of your lifetime, of which a certain percentage will be distributed each year thereafter.
• An irrevocable trust: with this, you may immediately relinquish control over the funds placed in the trust, which can be distributed to your beneficiaries upon your passing.
• A special needs trust: with this, you may immediately relinquish control over the funds placed in the trust, which can be distributed to your beneficiaries upon your passing for up to 21 years.

What will happen when a trust ends?

Generally speaking, a trust ends when all its funds have been distributed. Now, this distribution of funds takes place once you have already, sadly, passed on. This means you must name a trustee to whom you wish to distribute these funds on your behalf within your trust’s terms and conditions.

That said, you must be as specific as possible within your terms and conditions in how exactly you wish such distribution to be handled. For example, you may instruct your trustee whether you want such distribution to be a lump sum or a scheduled payment plan. It may also help to review these instructions with your trustee while you are still around.

In conclusion, you must reflect on the gravity of the matter at hand. Once you do, you must drop everything and reach out to one of the skilled Butler County estate planning & probate attorneys at Heritage Elder Law & Estate Planning, LLC.