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Yours, Mine and Ours
By Bernard V. Kearse, III, Esq.
Today’s family is more likely to resemble the Brady family than it is the Cleaver family. With divorces and advances in technology extending the typical life span, second marriages have become more commonplace. As families blend into “yours, mine and ours,” planning for the future of family members takes on added complexity and importance. How is one to ensure that children from a previous marriage, a second spouse, and children with a second spouse are all properly provided for after one’s death?
The solution is often found by the use of a trust -- a wonderfully flexible Anglo-Saxon concept that is time tested. A trust is simply a vehicle in which one person leaves assets for the benefit of another, but in a managed, protected environment. In other words, a trust allows one to retain control over the disposition of one’s property even years after death. This is accomplished through the appointment of a trustee. The trustee may be a bank or a trusted individual, such as a spouse or sibling, who holds and manages assets and distributes income and principal based on standards specified by the individual establishing the trust. This provides flexibility to persons with a blended or otherwise more complicated family situation.
For example, take the case of John and Suzanne, a married couple. John and Suzanne both have children from previous marriages. They also have a child together. Their first concern is to provide for the other, should one spouse die, and then to ensure that their minor child is properly supported and educated. But both also want to make certain that, once these objectives are accomplished, their children from prior marriages will receive some of their assets.
Another example is that of Sam and Joy. Again, both have children from a previous marriage, but they do not have children together. The main concern for this couple, after caring for the other in the case of a spouse’s death, is Sam’s youngest child who has a physical disability that will most likely limit his possibilities of ever being fully employed or able to manage his own personal and financial affairs. Sam and Joy want to leave some of their assets to all of the children. However, both wish to make certain that Sam’s youngest son is cared for financially for the duration of his life.
A properly drafted trust can address such concerns by allowing the judicious distribution of assets according to the various needs of family members. The establishment of a trust provides the control and flexibility necessary to ensure the care of all your loved ones in even the most complex of family arrangements.