A contingent trust, also known as a standby trust, is a specialized tool of estate planning. A contingent trust goes into effect when a certain event happens or certain conditions take place. A contingent trust is part of a will or living trust and is typically set up when there are minor children, persons with disabilities or someone who becomes incapacitated.
A contingent trust provides for minor children in the event of the death of the trustee. The contingent trust grantor or trustee determines when the contingent trust goes into effect. For example: A trustee with minor children establishes a contingent trust as part of a will to provide for minor children in the event of the death of both parents until the children are 25 years of age. Use a contingent trust to:
1. Provide for minor children in the event of the death of both parents through a contingent trust.
2. Plan for the care of beneficiaries with disabilities through a contingent trust.
3. Prepare in the event that a trustee or beneficiary becomes temporarily incapacitated.
Find contingent trust advice and contingent trust information to provide for minors
A contingent trust provides for minor children triggering the trust in the event of the death of both parents and guardians. Set up the terms of the contingent trust based on the ages of your children and how long they need the trust to provide for them. Work with contingent trust experts to add elements such as college educations or trade school choices depending on what path you want your children to take.
Create contingent trust documents with online tools to plan for children with disabilities
Contingent trusts help when one or more of your children have a disability and need life long care. Although contingent trusts are tools of complex estate planning, it is possible to produce contingent trust documents as a part of living trusts or other types of trusts with the right online tools and advice. Look for online sources that provide legal document services as well as legal advice.
Work with contingent trust experts for contingent trust management
During times of temporary incapacity, a contingent trust can be a lifesaver. If a trustee is temporarily disabled and needs someone to step in and make medical decisions, a contingent trust triggers and ends when the need begins and ends. Working with a qualified trust and estate attorney makes the management of a contingent trust worry free.
- Work with your contingent trust expert to spell out the terms of the trust, such as, who are the trustees, when is interest paid and when the trust triggers and ends.
- In the case of temporary incapacity, make sure your contingent trust allows the living trust grantor to create another trust on your behalf.