How to Draft an Educational Clause Into a Revocable Trust
- 1). Determine the asset or assets ro whoch you wish to attach the educational clause. The scope of the clause must be very specific and explicit in your trust document. If you are merely giving away a lump sum in cash, this is simple. However, if the educational clause is attached to numerous individual assets, the clause must be worded to encompass all of those assets.
- 2). Specify the terms of the condition in the disposition. For instance, write "beneficiary will receive $100,000 if and only if she completes four years of instruction at an institute of higher learning and obtains a bachelor's or equivalent degree."
- 3). Add any additional clauses that apply to the use of the money. For instance, if you intend the inheritance to be used only for educational expenses, specify that the money "shall be kept in trust for Beneficiary, and will be used only to cover her expenses associated pursuing her education."
- 4). Provide a clause explaining what will happen to the money in the event that the condition is not fulfilled within a reasonable amount of time. For instance, write "if Beneficiary has not enrolled in an institute of higher learning before her 25th birthday, all inheritance should be donated to charity."
- 5). Make sure the trustee you name in your trust document fully understands your intentions with the educational clause. It will be up to your trustee to interpret your words and determine whether the conditions you have specified have been fulfilled, and so it is vital that you make your wishes clear to the trustee.
