When you have a niece or nephew, you may love them like your own child, regardless of whether or not you have children of your own. As such, you may want to ensure they are taken care of upon your passing. However, many people are unaware they can create a Trust Fund for a niece or nephew in Ohio. If this is something you’re interested in, connecting with a Medina County, Ohio Trust preparation lawyer is recommended. Keep reading to learn more about this process and what you should consider when establishing a Trust Fund.
Who Can Be the Beneficiary of a Trust?
Many falsely assume that only their immediate family members can be named Beneficiaries of a Trust Fund, which is far from the truth. In reality, you can name anyone to inherit assets, from extended family to a stranger running a charity organization.
As such, you can, and it is common to, name your niece or nephew as the Beneficiary of a Trust Fund. Many aunts and uncles do this if they do not have children of their own, want to provide extra support to the child, or simply because they can. Regardless of your reason, you are within your right to create a Trust Fund for your sibling’s child.
How Do I Establish a Trust Fund for My Niece or Nephew?
When you want to create a Trust Fund and name your niece or nephew as the beneficiary, understanding how to proceed is critical. Generally, you can create a Revocable or Irrevocable Trust depending on your unique circumstances and needs. You should consult an attorney to determine which option is best for you.
Regardless, when you create the Trust, you must determine what the terms and conditions will be. Generally, this ensures you have greater control over the assets held in the Fund, as opposed to transferring them all over to your niece or nephew in a lump sum upon your passing through a Will. As such, this gives you a greater say on how and when they can gain access to the funds and assets held for them. For example, you may want to grant access to the funds for college or when they turn 25.
Is There Anything Else I Should Consider?
If you want to create a Trust Fund for a niece or nephew, it’s important to understand that you should only name them as the Beneficiary of the Fund. Unfortunately, many think they can leave their sibling in charge of the funds, only to find they have used them for their own needs, meaning the intended Beneficiary does not receive the funds intended for them.
As you can see, there are many considerations you must make when creating a Trust Fund for a family member. As such, it’s in your best interest to consult with the experienced team at Krause Law to ensure your wishes are met. Our team understands how complex these matters can be, which is why we are committed to helping you navigate the process of establishing a Trust Fund. Connect with us today to learn how we can help you achieve the peace of mind you need to ensure your loved ones will be cared for.
