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What does paragraph C on mutual wills mean for trust disbursement ages?

What does paragraph C on mutual wills mean for trust disbursement ages?

Full question:

Re: Mutual wills for married couple with minor children, Article 7, paragraph C: We wish to establish a trust for our child (or any future children) who are under age 21 (cf fields 37 and 41). _We do not understand paragraph C._ Why would the sample provide ages of 18 and 25 (fields 38 & 39) for disbursement? What happens, for instance, if the child is 19-which would qualify him for the trust but place him over the age of disbursement? And why is the age in field 39 OVER the age of 21? Basically, we're looking for clarification on this entire paragraph. Also, it is our understanding that we should list the contingent benficiary for life insurance and retirement accounts as 'the trustee named under the last will of ME.' Is this correct, or should we simply list the trustee's actual name?

Category: Wills and Estates
Date: 04/07/2025
State: Michigan

Answer:

Field 37 specifies the age of the youngest child for trust management. If any children are younger than this age, assets will go into a trust. Field 38 indicates the age when a specific child can start receiving distributions from the trust. Field 39 defines the age at which the trust will end, based on the youngest child's age. You can choose any ages for these fields. Sometimes, parents select an age older than the age of majority to protect a child who may struggle with managing money.

When naming someone in a will, clarity is crucial. If you name a person by their name only, it does not clarify that they are acting as a trustee. To ensure the person manages property as a trustee, you should specify their role, such as 'John Doe, Trustee.' If the trustee might change, a general reference like 'Trustee of the Doe Family Trust' can be used.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

What are the disadvantages of a mutual will?

One disadvantage of a mutual will is that it can limit the flexibility of the surviving spouse. Once a mutual will is executed, the terms generally cannot be changed without the consent of both parties. This can create complications if circumstances change, such as financial needs or family dynamics. Additionally, mutual wills may lead to disputes among heirs if the surviving spouse does not follow the agreed terms. It's essential to consider these factors and consult with an attorney to ensure that mutual wills align with your estate planning goals.

How to write a will for minor children?

When writing a will for minor children, it’s crucial to appoint a guardian to care for them in the event of your death. Specify who will manage any assets left for the children, such as a trust. Clearly outline how and when the assets will be distributed, considering their age and maturity. You may also want to include instructions for their education and upbringing. Consulting with an attorney can help ensure that your will meets legal requirements and effectively protects your children's interests.

What is an example of a mutual will?

An example of a mutual will is when a married couple agrees that upon the death of one spouse, the surviving spouse will inherit all assets, and upon the death of the surviving spouse, the remaining assets will go to their children. This type of will often includes specific provisions that cannot be altered without mutual consent, ensuring that both parties' wishes are honored. It's advisable to have legal assistance to draft a mutual will that reflects both spouses' intentions clearly.

What does a mutual will look like?

A mutual will typically includes similar provisions for both spouses, outlining how their assets will be distributed upon their deaths. It often names each other as primary beneficiaries and specifies contingent beneficiaries, such as children. The document may also include clauses that prevent changes to the will without both parties' agreement. The format can vary, but it generally follows standard will structures, including an introduction, bequests, and signatures. Consulting an attorney can ensure that the will meets legal standards.

Should married couples have joint or separate wills?

Whether married couples should have joint or separate wills depends on their individual circumstances. Joint wills are a single document signed by both spouses, often simpler but less flexible. Separate wills allow each spouse to tailor their estate plans according to their wishes. If there are children from previous relationships or significant differences in assets, separate wills may be more appropriate. Consulting with an estate planning attorney can help couples determine the best approach for their situation.

How to create a mutual will?

To create a mutual will, both spouses should first discuss their wishes regarding asset distribution and beneficiaries. It's important to document these agreements clearly in writing. Consulting with an estate planning attorney can help ensure that the will complies with state laws and captures both parties' intentions. The will should include clauses that specify it is a mutual will, preventing changes without mutual consent. After drafting, both spouses must sign the document in accordance with legal requirements.