Rabbi Trust

A Rabbi Trust is a type of trust that is used to hold assets for the benefit of a minor child. The trust is named after Rabbi David A. Epstein, who was one of the first attorneys to use this type of trust.

A Rabbi Trust is created by a parent or other person who wants to provide for a child's future without giving up control of the assets. The trust can be used to hold any type of asset, including cash, stocks, bonds, and real estate.

The trustee of the trust is responsible for managing the assets and distributing them to the child according to the terms of the trust. The trustee can be the parent who created the trust, another family member, or a professional trustee.

One of the main advantages of a Rabbi Trust is that it can provide for a child's future without giving up control of the assets. The parent who created the trust can still use the assets for their own purposes, and they can even change the terms of the trust if they need to.

Another advantage of a Rabbi Trust is that it can protect the assets from creditors. If the parent who created the trust gets into financial trouble, the creditors cannot access the assets in the trust.

There are also some disadvantages to using a Rabbi Trust. One disadvantage is that the trust can be expensive to set up and maintain. Another disadvantage is that the trustee has a lot of control over the assets in the trust, and the child may not have any say in how the assets are managed.

Overall, a Rabbi Trust can be a good way to provide for a child's future without giving up control of the assets. However, it is important to weigh the advantages and disadvantages of this type of trust before making a decision.

Here are some additional details about Rabbi Trusts:

* Rabbi Trusts are often used to provide for a child's education. The trust can be used to pay for tuition, room and board, books, and other expenses.
* Rabbi Trusts can also be used to provide for a child's medical care. The trust can be used to pay for doctor's visits, hospital bills, and other medical expenses.
* Rabbi Trusts can be used to provide for a child's general living expenses. The trust can be used to pay for food, clothing, and other necessities.

If you are considering using a Rabbi Trust to provide for a child's future, it is important to speak with an experienced estate planning attorney. An attorney can help you understand the advantages and disadvantages of this type of trust and can help you create a trust that meets your specific needs.