A statutory trust, by law, holds property until the time of death or other contingency. A statutory trust is usually revocable and has a termination date. Before the property sells, all income from the property stays in the trust for the benefit of the trust beneficiaries.

A statutory trust is set and governed by state law as to how the proceed of the property sale are paid out and how the overall terms of the trust are administered. Use a statutory trust as a part of trust language when minor children are involved. Use a statutory trust to:

1. Provide for minor children in the event of parent or guardian death.

2. Contribute funds from the proceeds of property sale to an UTMA or UGMA account through a statutory trust.

3. Take advantage of certain UTMA or UGMA tax benefits through a statutory trust.

Action Steps
The best contacts and resources to help you get it done

Find professional statutory trust information from statutory trust specialists

A statutory trust is a complex estate planning tool. To get the most benefit from this type of trust requires the right trust language. Getting the right statutory trust advice means more tax savings for you and you loved ones.

I recommend: Visit Attorneyfind.com and select your state and "Trusts and Estates" in the practice area field to find attorneys in your area. Also, check out Legalmatch.com for a free prescreening process to find the right attorney for you.

Create statutory trust documents with online tools and resources

Because a statutory trust can be both an irrevocable living trust or revocable, depending on what type of trust you have, they are relatively easy to produce with the right online tools and forms. Do it yourself trusts are a great resource when time is an issue and a trip to the attorneys office isn't possible.

I recommend: Use Alllaw.com and Lectric Law to find state specific trust forms for statutory trusts in your state. Choose revocable or irrevocable trust documents to create statutory trust documents.

Work with a statutory trust expert to determine if a statutory trust is right for you

During life's most difficult moments, getting the right answers before you need them is priceless. Statutory trust management can be confusing without the right expert services on your side. Estate planning attorneys help clients use both statutory trusts and UTMA or UGMA accounts, custodial accounts set up in your child's name, to plan for your child's future. Choosing a qualified trust and estate attorney takes the worry out of making the right choices for your particular situation.

I recommend: Lindquist & Vennum and Cline, Williams, Wright, Johnson & Oldfather are both national law firms with large estate planning and trust divisions to meet all your trust planning needs.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Any type of trust requires a higher level of capacity than that of 'sound mind' applicable to wills. The required capacity is similar to contractual capacity such as that needed to sign a deed.
• •  Notarize any type of trust, including a statutory trust, in case it needs recording with the Register of Deeds.
• •  Since statutory trusts are 'by law' trusts, they are state specific. Consider visiting your secretary of state's office or website for more information about statutory trusts in your state.