[quote=UCGal]We did a few things to encourage goals.
– college expenses are paid directly.
– small bonus on graduation of college… $10k
– paying out in thirds… 1/3 at age 25, then at 30 and 35.
We were worried about a lump sum before they’re mature enough to handle it. Something we’ve seen enough real world examples of.
Our goal is to live long enough that none of this is an issue…. we’ll spend it on ourselves in retirement. But if that plan doesn’t work, hopefully we have a good backup plan.
Edited to add that executor and backup executors are family… so only actual expenses charged.. not labor.[/quote]
We have something similar: 1/2 at the age of 25, 1/2 at the age of 30. Right now, we have an attorney as Trustee, but one of my childhood friends whom I trust 100% will be made Trustee within the next year or so, and we will limit the amount that can go toward any fees she wants to charge.
In our trust, we have a section titled: Trustee’s Discretion on Distribution to Primary Beneficiaries. This allows them to postpone any disbursement for the following reasons:
-current divorce proceedings
-existence of a large judgement against them
-chemical abuse or dependency (5-year wait period after they’re sober)
-existence of any event that would deprive the beneficiary of complete freedom to expend the distribution from the Trust estate according to his or her own desires
-if living in another country, the Trustee can withhold distribution if Trustee believes the political and/or economic conditions of such place make it likely that the money would not reach beneficiary or would be unduly taxed, seized, etc.
-judicially declared incompetency of the beneficiary
