A split trust is a type of trust that is divided into two or more separate trusts, each with its own set of terms and conditions. This type of trust is often used as a way to provide for multiple beneficiaries with different needs or to achieve multiple objectives.
In a split trust, the grantor (the person creating the trust) transfers ownership of certain assets to the trust, and the trust is then divided into two or more separate trusts. Each of these trusts has its own set of terms and conditions, and may be used to benefit different beneficiaries or achieve different objectives.
For example, a split trust might be used to provide for a spouse and children from a previous marriage. The trust could be divided into two separate trusts, with one trust being used to provide for the spouse and the other trust being used to provide for the children. The terms of each trust could be tailored to meet the specific needs and circumstances of the beneficiaries.
Split trusts can be useful in a variety of situations where the grantor wants to provide for multiple beneficiaries or achieve multiple objectives. However, it’s important to carefully consider the terms of the trust and consult with a qualified attorney or financial advisor before setting one up.