WILL YOU PAY $220 OR $15K? TAKE MY ADVICE
A TRUST can be created as testamentary trust or inter Vivos, which means you create them while you’re alive.
The simplest and cheapest way to create a trust is a Will.
For an individual, with a trust that you create while you’re alive, you could spend $3,000 to $15,000 on lawyers – but you can create one with a Will. My firm charges $220.
There are a number of reasons why you would want to create a trust with a Will, perhaps not to give young children a lot of money but to hold back the funds from your estate until they’re 18 or 25 years of age.
You might set an educational goal that they finish; a tradesman’s apprenticeship or a university degree.
The one that I really like is usually men who haven’t married until they’re 40 or 50 and have a 30-year-old son who’s highly competent and intelligent but just partying too much.
The father creates a Will that the son will be cut out of the Will unless he achieves a specified matrimonial status i.e. get married.
Sometimes the adult child is just a Big Spender and will spend every cent, or have problems with alcohol or drugs. If the parent thinks that the entire estate will be wasted they can set up a protective trust through the Will.
It’s not unusual for a person to have a Letter of Wishes or a Letter of Direction to accompany the Will, with special requests maybe to scatter their ashes over the waters of Keppel Bay where they went fishing and enjoyed many happy moments.
If you truly believe that your child is going to inject heroin up their arm with money that is inherited I believe you’ve got a duty to protect them via trust.
But there’s also the happy stories where there’s an exceptional child that needs some funds to set up a business and with that capital injection will thrive. My father said to the headmaster that Cam was a good student so long as you patted him on the back often enough and hard enough and low enough.