You can also draft a letter to your trustee requesting that your children be rewarded for achieving certain milestones such as graduating college or purchasing their first home. Consider drafting the trust to keep the assets in trust for the beneficiary’s lifetime with distributions completely in the discretion of the trustee, and do not give the beneficiary the right to withdraw the trust assets. If you decide against the use of a silent trust, you can still avoid your children turning into trust fund babies.
This will increase your costs to set up the trust, but it may be worth it in the long run. If that is the case, you will often need to retain a local attorney in that state to either draft the trust or review it. Your local lawyer may not be licensed in the state where you want to establish your trust. For instance, they can have the power to remove and replace the trust company as trustee or direct that distributions to a beneficiary are made or withheld. These roles can often be filled by a close friend or long-time family advisor who can be given the power to override the trustee. If you are uncomfortable with the idea of a trust company serving as trustee because the trust company does not have a personal relationship with your family members, you may be able to add a “trust protector” or a “distribution advisor” to your trust.
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