Question

Michael, age 49, is setting up a trust for the education of his three children, who are currently ages 1, 3, and 5. He would like the trust to retain the funds and provide the funds to the children when they start college. He plans on having his older brother, Bob, be the trustee and is putting an unencumbered apartment house valued at $500,000; corporate bonds valued at $100,000, and municipal bonds valued at $50,000 in the trust as the initial corpus. Michael would like to know if there are: 1) any issues that you can identify that must be addressed, and 2) any special instructions he should include in the trust document regarding the duties of Bob.

Answer 1