Trust advice

[jms0717]

Obviously, I should get legit legal advice from my attorney when the time comes. That said, I think y'all would have some helpful advice in the meantime. So I'm working on gathering skills to start working for myself and my business (web design for now and then others eventually). For now I'm a stay at home mom. When my parents died they left me a trust with just under a million worth of land and investment accounts. I get $600 / month, which is what makes me able to stay at home with my daughter (barely - husband's paycheck to paycheck, but we're doing alright for now).
My thought from a small amount of research is that when the money starts coming in, I create an llc with the trust as beneficiary (partner? Whatever the word is), and just talk to the trustee to increase my monthly income when I have the business income. Would that be a good form of asset protection or overly complicated? And at what point would I rework the trust/create a new one to make my daughter the beneficiary? I'm 23 and she's 18 months. My trust comes fully in my name in 12 years. I don't have any fears about my husband doing anything bad, but you know, just in case, I want it directly to her.
I don't know much about the legal aspects of this yet (and I'm also exhausted on a road trip), but I'm learning as I go, so feel free to correct terminology or ask for clarification if necessary!

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[Greg R]

I get $600 / month
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$600/ month? Conservatively speaking, a million dollars in assets should be netting you somewhere around $4000/ month. I would maybe focus on turning those assets into some recurring income. i.e. bonds, dividends, rental income.

Sorry I can't help you on the legal end.

 

[jon.a]

Do you become the trustee in 12 years?
Professional trustee's take 3-4% of the total per year. Are you making $7200 and your trustee $30-$40K?
Mrs jon and I manage a family trust. She's the trustee and I help. $600 is really low. It of course depends on the asset mix.
I would join the INSIDERS and take this tread inside.

 

[jon.a]

Correction:
Professional trustee's charge about 1% (sorry)
So, you get $7200 and the trustee gets about $10K.

Do you become the trustee in 12 years?
Professional trustee's take 3-4% of the total per year. Are you making $7200 and your trustee $30-$40K?
Mrs jon and I manage a family trust. She's the trustee and I help. $600 is really low. It of course depends on the asset mix.
I would join the INSIDERS and take this tread inside.

 

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[GlobalWealth]

Obviously, I should get legit legal advice from my attorney when the time comes. That said, I think y'all would have some helpful advice in the meantime. So I'm working on gathering skills to start working for myself and my business (web design for now and then others eventually). For now I'm a stay at home mom. When my parents died they left me a trust with just under a million worth of land and investment accounts. I get $600 / month, which is what makes me able to stay at home with my daughter (barely - husband's paycheck to paycheck, but we're doing alright for now).
My thought from a small amount of research is that when the money starts coming in, I create an llc with the trust as beneficiary (partner? Whatever the word is), and just talk to the trustee to increase my monthly income when I have the business income. Would that be a good form of asset protection or overly complicated? And at what point would I rework the trust/create a new one to make my daughter the beneficiary? I'm 23 and she's 18 months. My trust comes fully in my name in 12 years. I don't have any fears about my husband doing anything bad, but you know, just in case, I want it directly to her.
I don't know much about the legal aspects of this yet (and I'm also exhausted on a road trip), but I'm learning as I go, so feel free to correct terminology or ask for clarification if necessary!

Sent from my SM-G930T using Tapatalk

Unfortunately there are way to many variables as well as necessity to understand trust law for you to get any reasonable assistance on this forum.

Even with lawyers, not 1 in 100 understand trust law, even the ones that claim to specialize in it.

If you are earning $600/m that means the settlor specified in the letter of wishes how and how much you are to receive as trust distributions in a year.

It also seems the trust assets will be distributed to you at age 35. This is pretty standard.

I've seen trusts with all versions of letter of wishes stipulating how and when beneficiaries are to receive trust assets.

It's possible there are other stipulations as well. Once I saw a settlor who stipulated that if the beneficiaries had any alcohol or drug problems evidenced by criminal charges or rehab, they could not touch trust assets for another 5 years.

In 12 years you will have the assets distributed to you. At that time you should consider setting up a trust as the settlor and granting those assets (or whatever assets) into a new trust with your kids as beneficiaries.

There are tax laws to consider as well as your home state laws related to marital assets for granting assets into a trust.

You also need to learn the difference between a revocable and an irrevocable trust as the tax and asset protection implications are significantly different.

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