Trust Funds
I need an understanding of Trust funds. I am concerned. I need Trust funds explained from beginning to end. Who can I contact? I have several questions about my husbands trust fund for his child, my step child. She’s married however we feel the person she married is unfavorable. Their marriage is not well. My husband ill. If he passes does the Trust fund go to both? His daughter and the unfavorable spouse? How can we protect the funds going to his daughter and not giving to who she married? Help & give direction.
Terry Says
You need legal help, fast, because estate planning takes some time. A lot depends on how the existing trust fund is set up.
Your husband could leave money to the daughter in a trust he creates, and if she keeps it totally separate, her spouse would not be entitled to it in case of divorce. You can explain to her how important it is to keep all the money in a separate account. But if she is weak and commingles it — say by purchasing a house with him — then half is his in a divorce.
The only alternative is to create an irrevocable trust at his death (or better after your death in case you need the money). It would require an independent trustee, perhaps a lawyer or a bank, and set conditions of disbursement.
If you’re in Chicago, I recommend Kerry Peck as an estate planning attorney for this purpose. If elsewhere, find one at www.search-attorneys.com.
