workburnout
Recycles dryer sheets
There's more than one way to do it which would work great - maybe the way you mentioned. The way I chose was easiest and worked best for what I needed. If she was over age 25 but under 33 when I died, the 1/3 that would have gone to her at age 25 will go to her right away. Then, at the next age, 33, she will get the next 1/3. If I die when she is 34 she will get 2/3 of it at that time, and the remaining 1/3 at age 40. You can set it up however you want - with different rules on when she gets the money - but that's how I did it.
Now once she reaches 25, I may decide to change it but there are too many variables to know that now, as she could be married, have a kid, be more or less irresponsible - so I will wait and see what happens in her life. I will never tell her about it as I do not want her thinking in the back of her mind she has this money possibly coming. I think it is best that she and everyone else in my family have no idea I have much money I've saved through being frugal over the years.
As for language, it is a very standard pourover will that says anything left (after any debt I owe such as for bills is paid) will go to the trust. I actually did the will myself for free through a willmaking document on the internet. My lawyer approved it and tied it to the trust she set up. Both the trust and will were witnessed by several people plus were notarized by my attorney's office.
A person doing this could have an attorney do both the will and trust - for example, the Fidelity trust dept has attorneys who could do it. I think they quoted me around $2500 but I can't recall the exact amount, might have been more. Had I not known an attorney who could do it, I'd have used the Fidelity attorney.
I happened to know an attorney who drew up my trust - I worked with her in the past for other things and so got it done for around $800. I have a legal background and grew up in a family of lawyers (though I'm not a lawyer) - I am comfortable reading legal documents. So, I felt very comfortable having my attorney do the trust, getting her opinion on the will to be sure I was not missing anything important - and then tying the trust she made to the pourover will.
I also had Fidelity's trust dept lawyers read over the will and the trust. They charge nothing to have their lawyer do that - if they are named as the bank who will administer the assets - as it is in their best interest that the documents be drawn up correctly. They pointed out one minor thing that needed changing in the trust - and I had it changed.
So the trust is set up to be managed by a bank (Fidelity). The trust simply states what will be done with the assets (1/3 given when she reaches 25, etc). It has a backup charity in case she dies without kids. Also says if she has kids that her kids will get the money if she dies before she gets it.
There is no fee from Fidelity unless I die - then Fidelity takes a percent of the trust's assets each year as part of their standard trust fee schedule. To me it is well worth it as no one in my family would be trustworthy to manage my assets upon my death - and dole them out as the trust says to do. However, if you had a trustworthy responsible (good with money) friend or family member, you could save the Fidelity management fees and name your family member as the trustee who would divvy up the assets.
Ideally, I will live a long time, revoke the trust, and change my asset beneficiaries from going to my estate to go to my niece (or her kids) directly.
The trust to me is like an almost free form of insurance.
Again, the will does not say anything about 3 equal payments - it only says to put all assets into the trust. The will is fairly simple - if you google "pourover wills" or "pourover wills for trusts" you can find examples. It is the trust that Fidelity will manage that states the part about 3 payments.
Now once she reaches 25, I may decide to change it but there are too many variables to know that now, as she could be married, have a kid, be more or less irresponsible - so I will wait and see what happens in her life. I will never tell her about it as I do not want her thinking in the back of her mind she has this money possibly coming. I think it is best that she and everyone else in my family have no idea I have much money I've saved through being frugal over the years.
As for language, it is a very standard pourover will that says anything left (after any debt I owe such as for bills is paid) will go to the trust. I actually did the will myself for free through a willmaking document on the internet. My lawyer approved it and tied it to the trust she set up. Both the trust and will were witnessed by several people plus were notarized by my attorney's office.
A person doing this could have an attorney do both the will and trust - for example, the Fidelity trust dept has attorneys who could do it. I think they quoted me around $2500 but I can't recall the exact amount, might have been more. Had I not known an attorney who could do it, I'd have used the Fidelity attorney.
I happened to know an attorney who drew up my trust - I worked with her in the past for other things and so got it done for around $800. I have a legal background and grew up in a family of lawyers (though I'm not a lawyer) - I am comfortable reading legal documents. So, I felt very comfortable having my attorney do the trust, getting her opinion on the will to be sure I was not missing anything important - and then tying the trust she made to the pourover will.
I also had Fidelity's trust dept lawyers read over the will and the trust. They charge nothing to have their lawyer do that - if they are named as the bank who will administer the assets - as it is in their best interest that the documents be drawn up correctly. They pointed out one minor thing that needed changing in the trust - and I had it changed.
So the trust is set up to be managed by a bank (Fidelity). The trust simply states what will be done with the assets (1/3 given when she reaches 25, etc). It has a backup charity in case she dies without kids. Also says if she has kids that her kids will get the money if she dies before she gets it.
There is no fee from Fidelity unless I die - then Fidelity takes a percent of the trust's assets each year as part of their standard trust fee schedule. To me it is well worth it as no one in my family would be trustworthy to manage my assets upon my death - and dole them out as the trust says to do. However, if you had a trustworthy responsible (good with money) friend or family member, you could save the Fidelity management fees and name your family member as the trustee who would divvy up the assets.
Ideally, I will live a long time, revoke the trust, and change my asset beneficiaries from going to my estate to go to my niece (or her kids) directly.
The trust to me is like an almost free form of insurance.
Again, the will does not say anything about 3 equal payments - it only says to put all assets into the trust. The will is fairly simple - if you google "pourover wills" or "pourover wills for trusts" you can find examples. It is the trust that Fidelity will manage that states the part about 3 payments.
