Sample Letter to the Trustee of a Child's Trust

Sample Letter to the Trustee of a Child's Trust

By Melinda Gustafson Gervasi

October 22, 2021

Today I dip into my own files to share the sample letter I give to all of my clients who have opted to create a testamentary trust for their children.  What is a testamentary trust?  It is a will that allows a parent to appoint the Personal Representative (known as an Executor in other states), a Guardian for a minor child, distribute their probate assets, and includes the recipe for a trust to be created if both parents die.   This is a way to transfer your assets into a trust if you die, managed by a trustworthy trustee you appoint, until an age you set for the children to reach before taking control of the money themselves.  Children can request funds from the trustee for expenses, but the trust has to agree to the expenditure.  Providing guidance to that trustee on what you think should be paid for is crucial when making this trust the most useful if you die before your children are old enough to manage the funds on their own.  

Sample Letter to the Trustee

Providing additional information on your wishes for how trust monies should be used in the event the trustee is appointed by the court upon your death is an excellent way to enhance your estate plan. While advisory only, additional information on your intentions may reduce emotional stress and financial expenses if and when the trust is implemented.  Topics to consider include, but are not limited to:

    • Investment – preferences on what assets are liquidated or not, what should happen to the family home, use of “target date funds”.

    • Use of funds if there are multiple children – will younger children require more funds because certain events have not yet occurred for the younger child, but have occurred for an older child.  For example, a 16 year old may need full assistance for college tuition, but their 23 year old sibling has finished school and has already received financial assistance from the parents. 

    • Daily Lifestyle – provide a list of daily activities you feel are important to be paid for from the trust.  For example, paying for the family pet(s), providing cell phone service to a child, or funding private lessons for a child’s hobbies / interests.

    • Education – discuss how you wish the funds to be used to support education: tuition, tutors, test prep, computer purchases, etc. 

    • Travel – discuss if and how trust monies should be used to pay for a child to travel and/or to pay for relatives to travel to visit a child.  Think about what “travel” means – is a day trip to the Magnificent Mile in Chicago or a night in the Wisconsin Dells “travel”?

    • Family traditions and values – mention any family traditions or values that the trust monies should support.  For example, is attending a religious or secular summer camp an annual occurrence you wish to be continued?

    • Holidays and gifts.  How, if at all, should trust monies be used to celebrate holidays, birthdays and gifts.  Are there specific items you desire a child receive upon reaching a certain age or life milestone.  

    • Milestones – would you want certain milestones to be celebrated with purchases, such as a car at 16, paying for all or parts of a wedding, providing a down payment on a first home, or funding a business start-up.

    • Restrictions – what, if anything, should trust funds NOT be spent on.  Keep in mind other sources of money your child(ren) may have if you have passed away (Social Security Survivor benefits, provision by your former spouse, a trust established by another family member such as a grandparent).

 

The author's children back when she was still taller than her kids. 
M. Gustafson Gervsi 2021