Common Examples: setting up a testamentary trust to provide for all my children until they reach age XX
Presuming you have four children:
- Kid 1 (born 2000)
- Kid 2 (born 2003)
- Kid 3 (born 2006)
- Kid 4 (born 2009)
and want to set up a testamentary trust which provides a fixed sum of money (say S$2000) per month until they reach 30 years old. Thereafter, any remaining balance of the Trust Fund is to be equally distributed between them.
To achieve this, in the “Appoint People” page, add a testamentary trust.
Choose the name of the trust, trustee and trustee powers accordingly.
In the “Trust Beneficiary" section, add each of the children as a Trust Beneficiary with the following payouts:
- Give: Monthly
- Amount: SGD 2000
- Condition: Start when I pass away but stop when he/she reaches age 30.
To key in the condition, you can either manually type out the condition OR click on the “choose from list” function to select commonly used conditions.
In this way, each of the individual children will receive S$2000 per month until he/she reaches age 30. When the youngest child turns 30, any remaining balance of the Trust Fund will be distributed based on the Remainder Beneficiary section below.
In this example, add all four remainder beneficiary and allocate 25% each.
Note that Kid 1 will stop receiving the monthly payout in the year 2030 (when he turns 30), Kid 2 to stop in the year 2033 etc.
If you want all the children to stop receiving payout on the same year (which also means that they will stop receiving payout at different ages), you can instead change the condition based on the year (e.g. Start when I pass away but stop in the year 2035). This means that Kid 1 will reach the payout till he is 35, Kid 2 when age 32, Kid 3 when age 29, Kid 4 when age 26.
