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spendthrift trust

Discussion in 'Estate Planning, Creating Wills & Trusts' started by Mark Ward, Aug 27, 2020.

  1. Mark Ward

    Mark Ward Law Topic Starter New Member

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    Jurisdiction:
    Florida
    My father set up a trust in Michigan, the trustee has indicated he wants to close the trust and wants to give a portion of the funds, $35,000, to my 21 year old daughter but I feel it would be best if she received the money at a later age when she's more responsible. My daughter and I live in Florida and I see Florida does not allow spendthrift trusts, can a spendthrift trust be set up in MI for her to benefit from it at a later age even though she's in FL? FYI, the trustee is in his late eighties and I'd like my daughter to receive the funds in maybe 15 years.

    Thanks - Mark
     
  2. Zigner

    Zigner Well-Known Member

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    As I stated on the other forum that you posted this - this is really a matter between the trustee and your adult daughter.
     
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  3. Mark Ward

    Mark Ward Law Topic Starter New Member

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    I was hoping to keep it quiet
     
  4. Mark Ward

    Mark Ward Law Topic Starter New Member

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    Thanks though. Do you know the answer to my original question?
     
  5. justblue

    justblue Well-Known Member

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    Huh? What do you mean?
     
  6. Mark Ward

    Mark Ward Law Topic Starter New Member

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    she doesn't know his intentions and didn't see why she needed to know until she gets the funds
     
  7. Zigner

    Zigner Well-Known Member

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    Why do you believe that the answer to the question is relevant? The TRUSTEE is the one who needs to follow the terms of the trust. If the terms of the trust allow for the trustee to close the trust in this manner, and if they specify that the funds are to be distributed to your daughter when the trust is closed, then you have no input in this matter.
     
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  8. Mark Ward

    Mark Ward Law Topic Starter New Member

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    The trust specifies that it is up to the trustee to decide who gets the funds and how it's distributed, so consequently the trustee may agree with me and if so my questions remains

    so lets say the trustee and my daughter agree, can the funds be put into a spendthrift trust in MI while my daughter is in FL? Thanks
     
    Last edited: Aug 27, 2020
  9. Zigner

    Zigner Well-Known Member

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    Again, this is between the trustee and your adult daughter.
     
  10. zddoodah

    zddoodah Well-Known Member

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    Is your father still alive?

    I assume the trustee is not your father. Correct? As for the trustee "want[ing] to close the trust," what the trustee "wants" is not particularly relevant. What does the trust say about termination/"closing"?

    See above re "wants," but why does he "want[] to" do this? Is that what the trust instrument says is supposed to happen when the trust is "closed"?

    No offense, but your feelings on the subject aren't any more relevant than what the trustee "wants."

    Where did you get this idea? Based on my own quick googling, this isn't true.

    In the abstract world of all that is hypothetical, virtually anything, including this, is possible. However, I don't really see the point of the question. If the trust instrument says that, upon closing, your daughter gets $35k (or if the trust gives the trustee discretion in this regard), then that's all that matters. If this is a discretionary distribution, you're certainly free to try and persuade the trustee not to make the distribution or to make the distribution to a trust that you set up and of which you are the trustee, but it would be entirely the trustee's decision to do or not do what you urge.
     
  11. Mark Ward

    Mark Ward Law Topic Starter New Member

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    My father has passed.

    The trustee can close the trust at his discretion.

    The trustee has the discretion to give my daughter any amount of money he wants thats available.

    Yes, I do see now there are options in FL. The original article I read on spendthrift trusts did not include FL in the states listed that accept it.

    I understand what I want is irrelevant but I hope the trustee, a family friend all my life, would maybe consider my suggestion but... he is driving the bus, knows it and likes to show it, unfortunately.

    Let's say the trustee decides it's in my daughter's best interest to set up a sendthrift trust, would it be set up in MI where the current trust is or in or FL where my daughter lives?

    Thanks!
     
  12. Zigner

    Zigner Well-Known Member

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    Depending on the exact wording of the trust, placing the money in a spendthrift trust without the consent of your daughter may not be an option.
     
  13. Mark Ward

    Mark Ward Law Topic Starter New Member

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    Let say it is an option, would it be set up in MI where the current trust is or in or FL where my daughter lives?
     
  14. Zigner

    Zigner Well-Known Member

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    It really doesn't matter where it's "set up". I would suggest that it be set up in whatever locale is most convenient for the trustee.
     
  15. PayrollHRGuy

    PayrollHRGuy Well-Known Member

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    Where is the trustee? If he is in MI and as your father created the trust in MI I can see no reason the spendthrift trust wouldn't be in MI but again that is up to the trustee.

    But I agree with the others that have answered all of this is going to depend on the wording of the trust.
     
  16. zddoodah

    zddoodah Well-Known Member

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    Could be either, but I agree with this:

     

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