Is a trust considered marital property?

Generally, trusts are considered the separate property of the beneficiary spouse and the assets in a trust are not subject to equitable distribution unless they contain marital property. Putting marital assets into a trust does not make those assets separate property.

Can a trust be split in divorce?

The key to protecting marital assets in a divorce is to create an irrevocable trust. Assets that are not owned or controlled by a spouse cannot be subject to division in a divorce. Distributions from a trust of which you are a beneficiary can be protected if the proper language is used.

What is a family trust agreement?

Family trusts are fiduciary relationships that are agreed to by two or more parties. A grantor gives another party called a trustee the right to hold the legal titles of the family’s assets or property for the benefit of the beneficiaries.

Can a child be placed in a trust?

When creating trusts, parents are faced with tough decisions about how to leave their assets to their children. While each person needs to consider their own situation and unique children, there are a few general issues that everyone should consider. Assets of minor children should always be held in trust.

Can a minor inherit money from a trust?

While each person needs to consider their own situation and unique children, there are a few general issues that everyone should consider. Assets of minor children should always be held in trust. You do not want children under 18 inheriting assets. While they are under 18, their guardian or conservator will control the money for them.

What should be included in a trust agreement?

The Grantor should note whether they are married and, if so, the name of their spouse, as well as whether they have any children. For the purposes of a Trust Agreement, children include both those that were born to the Grantor as well as those that have been legally adopted by the Grantor.

Who are the beneficiaries in a trust agreement?

One of the most important parts of a Trust is the Grantor naming their beneficiaries. The beneficiaries are the people who will inherit the contents of the Grantor’s Trust after the Grantor’s death. The Grantor may make specific gifts in their Trust Agreement, naming specific people to inherit specific possessions, property, or cash assets.

What should a married couple consider when setting up a trust?

Maximum control over assets and distribution. Control and trust are main factors that married couples take into account when deciding to have separate Trusts or Joint Trusts. With a Joint Trust, when one spouse dies, the Trust does not become “irrevocable,” meaning it can still be amended by the surviving spouse.

Can a joint trust be created if a couple is not married?

The option of creating the marital trust at the death of the first member of the couple to die just isn’t there. It turns out to be a real mess to try and divide the assets in a joint trust at the first death of the two individuals who are not legally married. Plus, in this situation the joint revocable trust can be an estate tax disaster.