A trust fund is usually not meant to last forever, but it can last for quite a long time. There are certain rules about how long you can keep a trust going, but there are also a few exceptions and some instances when you don’t even need a trust to last for long at all. A Rockland County estate planning attorney from our firm can help you learn more.
How Long Can a Trust Fund Last?
Generally, a trust fund is only supposed to last up to 21 years. Such a fund is really only supposed to last until its purpose has been served, and there is rarely a reason for a trust fund to need to last longer than that. However, there are exceptions and they might be the kinds of arrangements that could benefit some of your heirs.
Is There Any Type of Trust Fund That’s an Exception?
One type of trust fund that could last longer than 21 years is a special needs trust. This is meant to provide funds for a relative who has special needs. It can be set up in a way that does not prevent them from receiving government benefits, like Medicaid. Depending on the age of your loved one, this type of trust may need to last longer than 21 years.
A spendthrift trust can provide money for an heir who is not great at managing their own finances. A trustee is in charge of when and how money is dispersed from this kind of trust fund. It may last more than 21 years depending on the age of your heir and how much you put in the fund.
Is Every Trust Fund Meant to Be Maintained a Long Time?
You may be worried about this time limit of 21 years, but it’s important to note that many types of trust funds are not even meant to stick around that long. Many can fulfill their function in a fraction of the time. If a trust is simply meant to pass assets to your spouse or other loved ones after you pass away, your trustee could accomplish that in a year or a little bit longer.
Should a Lawyer Help Me Set Up a Trust?
If you do plan to use a trust fund, we recommend talking to a lawyer. These types of arrangements have rules and you want to make sure that everything has been set up correctly. You want to be sure that every one of your beneficiaries receives the assets you want to leave for them.
Talk to Our Legal Team
If you want to set up a trust fund of your own, contact the Lauterbach Law Firm. We can answer any questions that you have and we’ll make it easy to handle all of the estate planning tasks that you need to do to ensure that it’s easy for your beneficiaries to receive their inheritances.
