From our “Ask a Question” mailbag: I created a Revocable Living Trust to avoid probate with the Philadelphia Register of Wills, but I have decided that I would like to form a trust that would pay for my nieces college education. Can I do this using my Revocable Living Trust?
You can certainly form an Education Trust within the terms of your existing Revocable Living Trust. A Living Trust is divided into two main parts; the terms that apply when you are alive and the terms that apply after your death.
What I can do is draft an amendment to your existing Revocable Living Trust adding the Education Trust into the “what happens after your death” portion. We can discuss the terms, but they can be very broad or narrow. For example, you could say that the funds can only be used for tuition payments or you can allow them to be used for books and housing. You could put a ceiling on the amount of money used on each niece, or you could let your trusteehave the discretion to use the funds differently for each niece in any amount.
I would be happy to brainstorm options with you so that your Education Trust will reflect your wishes.
If you have any other questions about Estate Planning in Philadelphia, feel free to contact our office for a free consultation.