A derivative trust follows another trust. This means that the beneficiaries of the main trust become the trustees of the derivative trust. This gives power to the new trustees to create a trust for their children or beneficiaries from the assets of the original trust.
This type of trust, also known as a sub trust, covers a great variety of trust documents. Any type of trust, both irrevocable living or revocable, can also be a derivative trust. Derivative trusts are a common tool of estate planning. Use a derivative trust to:
1. Establish a trust for the children of the beneficiaries of the original trust.
2. Manage a trust for beneficiaries who eventually declare themselves the trustees.
3. Provide for children and grandchildren through a derivative trust.
Find derivative trust information from derivative trust specialistsA derivative trust is a complex estate planning tool and a great way to provide fro multiple generations in one trust. To get the most benefit from this type of trust requires the right trust language. Getting the right derivative trust advice means more protection for you and your loved ones.
Create derivative trust documents with online tools and resourcesBecause a derivative 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 attorney's office isn't possible.
Work with a derivative trust expert to determine if a derivative trust is right for youDuring life's most difficult moments, getting the right answers before you need them is priceless. Derivative trust management can be confusing without the right expert services on your side. Choosing a qualified trust and estate attorney takes the worry out of making the right choices for your particular situation.
- 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 derivative trust, in case it needs recording with the Register of Deeds.