Plan6

Living Trust Plan for Blended Families

Answers to some common questions about our Living Trust Plan for Blended Families.

  • How does a Living Trust Plan for Blended Families work?

    A Living Trust Plan for Children uses three separate trusts to manage your property:  1) one trust is used to direct distribution of maritial property for both spouses; and 2) a separate revocable trust for each spouse is used to manage assets for their respective children until they reach an age specified by each parent.  


    This arrangement allows the parents to "fine tune" their estate plan to protect themselves and their respective children regardless of future events.  It also allows the parents to direct assets owned each of them prior to their marriage to their own children.

  • What documents are included?

    These documents are included with a Living Trust Plan for Children:


    • Revocable living trust for both spouses 
    • Separate revocable trust for the children of each spouse
    • Certificate of trust for each trust
    • Authorization to disclose medical information
    • Warranty deed to fund trust
    • Assignment of personal property to trust
    • Agreement to transfer business assets to trust
    • Trust funding instructions
    • All documents needed by the trustee to administer each trust (trustee instructions, acceptance of trust, certificate of trust, notice to beneficiaries, and notice to creditors)
    • Pour-over will 
    • Power of attorney
    • Healthcare directive
    • Appointment of guardian
    • Appointment of funeral representative
    • Estate planning roadmap
  • What is the advantage of using separate trusts for the children of each spouse?

    A separate trust for the children of each spouse has several benefits over any other method:


    • Provides a low-cost method to separately manage property for the children of each spouse
    • Simplifies designation of beneficiaries for life insurance and retirement accounts
    • Simplifies management of property for the children by a trustee
    • Allows each parent to designate a separate trustee just for their children
    • Prevents disputes among stepchildren
  • Who is this plan designed for?

    A Living Trust Plan for Blended Families is suitable for a married couple who -- 


    • Desire to avoid probate
    • Have children from previous relationships
    • Desire to distribute marital property to themselves
    • Desire to set aside certain assets just for their own children
    • Need a complete estate plan to manage property for children
  • What are the benefits of this plan?

    A Living Trust Plan for Blended Families is designed to provide these benefits (which may vary in each case):


    • Avoid probate proceedings
    • Reduce administrative cost and complexity
    • Maximize tax deferral for retirement accounts (401k or IRA) passed to children
    • Simplify designation of beneficiaries for life insurance and retirement accounts
    • Protect the children of each spouse with separate assets
    • Simplify management of assets for children by a trustee
    • Coordinate assets to work with estate planning documents for maximum benefit
    • Designate any number of beneficiaries, and the age at which they will receive property
    • Designate personal property to be given to specific persons
    • Make charitable gifts
    • Provide care and support for beneficiaries
    • Protect property from waste by beneficiaries
    • Protect property from beneficiaries' creditors
    • Disinherit specific persons
    • Manage property for persons under disability or with substance abuse problems
    • Appoint a trustee to manage property for beneficiaries
    • Appoint an agent under power of attorney to make financial decisions, and handle digital assets
    • Appoint a patient advocate to make medical decisions, including withdrawal of life support
    • Appoint a guardian to care for minor or adult children
    • Appoint a funeral representative to carry out your funeral and burial instructions
    • Prevent family disputes
  • What services do we provide?

    We provide the following services with this plan:


    • Consultation to create your plan
    • Custom document drafting
    • Consultation to review documents
    • Witness and notarize documents
    • Deed recording
    • Document binding
    • Scan documents to flash drive
    • Delivery of original documents and copy on flash drive
    • Follow-up consultations as necessary to implement plan
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