A third party settlor plays a very important role in certain estate law cases where a third party is needed. There are times when the property or assets of the deceased are distributed to the family and friends as laid out in the will because they are all adults. However, there are times when the third party settlor has to hold this property to benefit someone who is named in the will or trust paperwork. Take a look at how this process works so you know how to use one of these settlors if you need them.
1. How Do You Choose The Settlor?
You must choose the settlor with help from a lawyer. The lawyer who writes the will might be the person who watches over the property or assets. You might have a financial planner do this, or you could work with someone in your family if need help. The person who is charged with doing this job needs to be fully-aware of what they are doing, and they must be committed to the process so that the will is fulfilled completely.
2. Where Is The Property Kept?
The property that you have left over for someone who is not an adult will be held by the settlor, but that settlor must have an escrow account or corporation set up to manage the property. These properties will sit there without being touched, and they cannot be transferred at all unless someone with power of attorney gives an order to sell or transfer the property. The person that is supposed to inherit the property might become an adult, and they can choose to use the property in any way that they want.
Cash that is left behind in a will is often placed in an escrow account that collects interest, and the person who is managing this money can keep all statements so they know how the account is performing. However, this person does not have access to the money. The purpose of the escrow account is to protect the money. Escrow accounts are very hard to empty, and the person that is supposed to collect the money has to prove who they are, how they are named in the will, and appear to close the account. You have protected this person from fraud, and your job is done when that person takes over the account.
Corporations could be left over in escrow because the person who is supposed to take control is not old enough to own the stock in the company that would make them the CEO. This means that you need a special account just for that stock, and you need a lawyer or broker to watch over the account. The company can function as normal, but the primary owner might not be in control of the company. This person can take the stock when they are old enough, and they will become rightful owner fo the company.
5. Writing The Will
You need to ask a Estate lawyer to write up the will for you, and they will provide you with a complete document that lays out everything you wanted to do, how it will be done, and why. This is a very important document that people in your family need to have access to, and that is the document that must be used to settle your estate when you die. You should make certain that people know when you have made a change, and you might even remove the settlers when the people in your will turn 18. An updated will is much easier to administer, and it saves everyone a lot of time.
The best part of this process is that you can make everything simple for your family when you die. Your family does not want to be in a place where they are trying to figure out what you wanted and they should not feel as though they are managing a piece of paper they have never seen. Share this document with your family, explain to hem what you have done, and keep in touch with your lawyer so that you can make any necessary changes.