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Posted by Blake Krass on November 13, 2006, 7:50 pm
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Stuart A. Bronstein wrote:
>> So going the 529 route is okay - the only question is how to
>> set up ownership of that since the beneficiaries are still
>> minors. If she let the parents own it, then maybe she'd be
>> delinquent in her duties by in effect turning over assets to
>> someone other than the beneficiaries. It's not a matter of
>> not trusting the parents or anything like that, but she
>> wants to be sure it's set up following the intent of the
>> will as closely as possible to avoid even the remote
>> possibility of getting accused of mishandling it later.
> I haven't noticed if you said which state you are in, so
> local laws could be different. But here in California you
> really can't do any of what you are proposing without having
> it approved by the probate court.
>
> In your case your wife would propose to the court what she
> would like, along with terms under which the parents would
> be responsible to the kinds for handling their property. If
> it's consistent with the will, the court will issue an
> order, probably imposing trusts for the individual kids,
> naming their parents as trustees and imposing rules for
> handling the trusts.
>
> When probate closes the money will be distributed to the
> trustees of the various trusts, and your wife will be off
> the hook.
I learned that I misunderstood our lawyer - He meant all
along that we would establish these with the parents as
trustees since it's like a gift to their children, so this
is simpler than I had realized. I thought my wife would be
required to be trustee. So it works out as you described.
This is Texas by the way. And thanks much for all the
answers here.
--
Blake Krass
bkrass@email.com
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