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Barrister
Barrister, Attorney
Category: Estate Law
Satisfied Customers: 33726
Experience:  15 yrs estate law, real estate. Wills/Trusts/Probate
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My mom has given each of our children a $14,000 gift to be

Customer Question

My mom has given each of our children a $14,000 gift to be used for education. She will probably do this more than once. We would like to set up something so that we distribute the money as needed and they can't get at it until they are 25. How do we do this?
Submitted: 1 year ago.
Category: Estate Law
Expert:  Barrister replied 1 year ago.
Hello and welcome! My name is ***** ***** I will try my level best to help with your situation or get you to someone who can.
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Is she gifting the money directly to the children or is she giving it to you to use for the children's education?
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Does mother agree to place restrictions on the money?
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thanks
Barrister
Customer: replied 1 year ago.
She is gifting directly to the children. She would probably agree to whatever we decide is the best way to handle it.
Expert:  Barrister replied 1 year ago.
In order to be able to keep control over the money past the age of 18 the money would need to be placed into a revocable trust with you as the trustee for the benefit of the children to be used for educational purposes only. The trust could be set up so as to terminate upon each child's 25th birthday with that child then receiving the balance of the money that they were gifted.
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Thanks
Barrister
Customer: replied 1 year ago.
So we create a revocable trust called, for example, the "Brandon . . Trust". How difficult is this? Are there forms online, if not, roughly what would it cost? Would my mom need to give directly to the trust, or write checks in the kids' names?
Customer: replied 1 year ago.
Once the trust is created, can we invest the money as we see fit? Do we just name the investment the same as each trust?
Expert:  Barrister replied 1 year ago.
Yes, you can purchase template trust forms from sites on the internet that are state specific. A site I use myself for templates is USLegalforms.com as they have professionally drafted templates for just about any legal matter.
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You can look at their trusts here and preview them before purchasing:
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http://secure.uslegalforms.com/cgi-bin/forms/search.pl?state=WA&query=Revocable+Trust&field=anywhere
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You could set up a main trust to hold all the assets or set up separate trusts for each child and grant yourselves the power as trustees to invest the money as you see fit.
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Mother would just gift the money directly to each trust or to a main trust with instructions that a sub trust would be established in the main one for each child.
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Or if you wanted kind of "guided help" in setting up the trusts LegalZoom.com or RocketLawyer.com can provide that help. They cost a little more because they guide you through the trust formation.
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But a trust is about 90% standard, so if you simply purchased the trust forms, you can set up as many as you need by simply changing the names on them and any other provisions.
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thanks
Barrister

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