In Maryland, one way to honor people who have passed away is to set up a memorial trust. This allows people to make donations to a charity, surviving family members of the deceased or anything that the deceased believed in.
How memorial trusts work
A memorial trust is not hard to set up, but it needs the right steps and key figures in order to make it happen. First of all, the trust needs an administrator, who will be in charge of applying the funds to their purpose. There is a series of legal requirements to meet that define what the trust is and where the money should go. The trust will also need to file annual paperwork to the IRS that documents its activities. The trust is not subject to income tax, but it must show that the finances are in accordance with the intended goals of the trust.
What to look for in a trust administrator
Finding the right estate administrator for the trust is one of the most important parts. This person must be trustworthy as well as competent. Often, people choose lawyers, bankers or other outside parties to be administrators because they have the experience and the objectivity to run the trust correctly. Memorial trusts are a powerful means to help create or carry on a legacy for a person.
Memorial trusts are not a typical part of estate planning, but they can be a wonderful way to honor someone special. With the right plan, a memorial estate can last for a long time, and this can lead to an ongoing and sustained benefit.