A trust is the legal relationship between one person, the trustee, having an equitable ownership or management of certain property and another person, the beneficiary, owning the legal title to that property. The beneficiary is entitled to the performance of certain duties and the exercise of certain powers by the trustee, which performance may be enforced by a court of equity. This form is an example of a trust that is subject to direct court oversight since the initial trust funds resulted from a civil judgment in favor of a minor.
Wisconsin Trust Agreement for Funds for Recovery of Judgment for Minor is a legal document that establishes a trust to hold funds awarded to a minor as a result of a legal judgment. This agreement ensures that the awarded funds are properly managed and utilized for the minor's benefit until they reach adulthood. In Wisconsin, there are two main types of Trust Agreements for Funds for Recovery of Judgment for a Minor: 1. Revocable Trust Agreement: A revocable trust agreement allows the granter (the person establishing the trust) to make changes or revoke the trust at any time during their lifetime. It provides flexibility for the granter to modify the terms of the trust as circumstances change. 2. Irrevocable Trust Agreement: An irrevocable trust agreement, on the other hand, cannot be altered or revoked once it is established. This type of trust provides more security and ensures that the awarded funds are protected and utilized solely for the minor's benefit. These trust agreements typically include the following important details: 1. Identification of the parties: Name of the granter and the minor for whom the trust is being established. 2. Trustee appointment: Appointment of a trustee, who will be responsible for managing the trust, making informed investment decisions, and distributing funds as outlined in the agreement. 3. Trust terms and conditions: Detailed clauses and provisions outlining how the trust funds should be managed, invested, and distributed. This section may also specify any restrictions or limitations on the use of the funds. 4. Termination of the trust: Conditions for the termination of the trust, such as when the minor reaches a certain age, completes education, or other specific milestones as decided by the granter. 5. Reporting and accounting: The trustee's obligation to provide periodic reports and accounting to the granter or relevant parties, ensuring transparency in the management of the trust funds. 6. Contingency plans: Provision for alternate trustees in case the originally appointed trustee is unable or unwilling to fulfill their duties. A Wisconsin Trust Agreement for Funds for Recovery of Judgment for a Minor is a crucial legal document that safeguards the awarded funds and ensures their proper utilization for the benefit of the minor. It provides peace of mind for all parties involved and helps protect the minor's financial interests until they are deemed mature enough to manage their own funds.
