discretionary trust limits

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Latest post Fri, Mar 31 2017 10:08 AM by DOCAR. 6 replies.
  • Sun, Mar 26 2017 1:01 PM

    • rh63
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    discretionary trust limits

    I am in the process of drafting  a trust for my sibling who is 70 and her adult children. As of now the trust will pay either for a mortgage or disperse the trusts yearly earnings. She has insurance but did not know if the trust is too restrictive.

    Also if the trust has a mortgage option should there be any clause for the banks benefit which would make the loan process go smoother.

  • Sun, Mar 26 2017 3:14 PM In reply to

    Re: discretionary trust limits

    rh63:
    I am in the process of drafting  a trust for my sibling who is 70 and her adult children.

    Are you drafting a trust that you are creating yourself to benefit your sister and her adult children, or are you drafting a trust document for your sister to use to create a trust to benefit her children? If the latter, you should be aware that drafting legal documents for others based on their specific needs constitutes the practice of law, and if you are not an attorney you could end up committing unauthorized practice of law. 

    As for what the trust should contain, that depends on the details of why the trust is being created, what property will be in the trust, and the circumstances of the trust creator and the trust beneficiaries, It might be a good idea to consult an elder law/estate planning attorney for assistance with it to get it right. 

  • Sun, Mar 26 2017 3:29 PM In reply to

    • rh63
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    Re: discretionary trust limits

    This is a rough draft as an outline for the attorney to follow. Trust is for my sister who will use it until she passes and then it will be divided equally between her children.

  • Mon, Mar 27 2017 11:53 AM In reply to

    Warning [=*#] Re: discretionary trust limits

    rh63:
    I am in the process of drafting  a trust for my sibling who is 70 and her adult children.

    I have to assume you're not a lawyer, so you should immediately stop doing this because what you're doing is illegal.

  • Tue, Mar 28 2017 10:40 AM In reply to

    • Drew
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    Re: discretionary trust limits

    And it may well be super lousy and impractical as well. 



  • Fri, Mar 31 2017 9:33 AM In reply to

    • rh63
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    Re: discretionary trust limits

    I really don't know why people who are not attorneys attempt to answer a simple question. Please don't respond because unless you have something constructive to add you are wasting people's time. I contacted a mortgage company and they said it would be no problem obtaining a loan with this type of trust they added this should be known by any first year law student.

  • Fri, Mar 31 2017 10:08 AM In reply to

    • DOCAR
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    Re: discretionary trust limits

    Since we have not seen the trust or know specifically what "this type of trust" is, makes most attorneys who respond to internet questions reluctant to give definitive answers.  While any first year law student (which I doubt, since you don't cover trusts until the second or third years) may know the answer after reviewing the trust, I doubt they could give an accurate opinion without reading the trust.

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