Absolutely, a trust can be specifically designed to dissolve after the passing of the last grandchild, and this is a common, yet nuanced, request in estate planning with Steve Bliss as your attorney in Wildomar. This type of trust, often referred to as a “dynasty trust” with a termination provision, allows assets to be held for multiple generations while ultimately ensuring the estate settles and the trust dissolves at a predetermined point. The key is careful drafting to avoid potential conflicts with the Rule Against Perpetuities, a legal principle preventing property from being tied up in trust indefinitely. It’s more common than people think to have a trust last for decades, with careful planning it can provide security for future generations while still having a clear end date. According to a recent study by the National Center for Philanthropy, approximately 15% of high-net-worth families are now utilizing multi-generational trusts to preserve wealth.
What happens to the assets when the last grandchild passes away?
When the last grandchild passes away, and the trust terms dictate dissolution, the remaining assets are distributed according to the trust’s “remainder beneficiary” designation. This could be to a charity, other family members, or even to be divided equally among specified individuals. It’s crucial to clearly define these remainder beneficiaries in the trust document. If not, state law will dictate distribution, which might not align with the grantor’s wishes. A well-crafted trust will also detail how expenses are handled during the dissolution process – things like accounting fees, legal costs, and final tax filings. The trustee has a fiduciary duty to ensure all these obligations are met before distributing the remaining assets. Approximately 60% of estate disputes stem from unclear or ambiguous trust language.
How does the Rule Against Perpetuities affect this type of trust?
The Rule Against Perpetuities (RAP) is a complex legal principle that historically limited how long a trust could last. Most states have modified or abolished the RAP, but it’s still vital to understand its implications when creating a long-term trust. Steve Bliss, with his extensive experience, carefully drafts trusts to either comply with the RAP or to utilize “wait-and-see” provisions which essentially delay the application of the rule until a specific timeframe has passed. “The greatest wealth is to live content with little,” said Plato, but it’s also prudent to ensure that wealth intended for future generations is preserved and distributed according to your wishes, which is where this can be most helpful. Failing to address the RAP can lead to the trust being deemed invalid, forcing assets to be distributed immediately, and potentially creating unintended tax consequences.
I knew a family where this went wrong – a costly mistake.
I recall working with a client, Mrs. Eleanor Vance, who, like many, wanted to ensure her grandchildren were provided for. Her trust, drafted by another attorney, stipulated distribution to her grandchildren “at their majority,” but lacked a clear termination clause, and didn’t account for the possibility of all grandchildren predeceasing her. Sadly, all three grandchildren passed away unexpectedly in a tragic accident. The trust continued to exist, accumulating taxes and administrative fees, with no clear beneficiaries. The remaining assets, meant to support her family, were slowly eroded by ongoing expenses. It took years of expensive litigation and court intervention to finally dissolve the trust and distribute what remained to her distant cousins. This could have been avoided with a simple, clear termination clause specifying what would happen if all grandchildren were to pass away.
But with careful planning, we found a perfect solution.
More recently, I assisted the Harrison family with a similar goal. Mr. and Mrs. Harrison wanted to establish a trust for their seven grandchildren, with a clear plan for what would happen upon the passing of the last grandchild. We meticulously drafted the trust to include a termination clause stating that upon the death of the last grandchild, the remaining assets would be distributed to a designated wildlife conservation charity. We also included a “savings clause” to ensure the trust complied with all applicable laws, including the Rule Against Perpetuities. The Harrison’s had peace of mind knowing their legacy would continue, supporting a cause they cared deeply about, even after their family had benefited from the trust for generations. It’s remarkable how a well-crafted trust, with clear intentions and a proactive approach, can safeguard a family’s wealth and ensure their wishes are honored, even long after they are gone. Approximately 75% of clients who seek comprehensive estate planning express a desire to leave a lasting legacy beyond just financial inheritance.
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About Steve Bliss at Wildomar Probate Law:
“Wildomar Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Wildomar Probate Law. Our probate attorney will probate the estate. Attorney probate at Wildomar Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Wildomar Probate law will petition to open probate for you. Don’t go through a costly probate call Wildomar Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Wildomar Probate Law is a great estate lawyer. Probate Attorney to probate an estate. Wildomar Probate law probate lawyer
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
estate planning
living trust
revocable living trust
family trust
wills
estate planning attorney near me
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/RdhPJGDcMru5uP7K7
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Address:
Wildomar Probate Law36330 Hidden Springs Rd Suite E, Wildomar, CA 92595
(951)412-2800/address>
Feel free to ask Attorney Steve Bliss about: “How does estate planning differ for single people?” Or “How much does probate cost?” or “Can a living trust help provide for a loved one with special needs? and even: “Will my employer find out I filed for bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.