Why should I consider a trust for my minor children?
April 9, 2020
If you have minor children, it is important that you create an estate plan. You want to make sure you can take care of them even after your death, and since death is so unpredictable, you want a plan in place right now. Only through a proper plan can you ensure your children get the inheritance you want them to.
There are many options for how you can leave assets to your children and plan for their future. One of the most common is using a trust. According to Forbes, a trust sets up a three-party agreement for the management and distribution of assets. You set up the trust according to the conditions you desire. The trustee will manage the trust and distribute the assets to your children who are the beneficiaries. There are many reasons why people decide to use trusts for minor children.
A trust also lets you have control over the distribution of the assets you leave to your minor children. You can specify restrictions and rules for how the trustee will distribute the assets in the trust. If you feel your child may not be mature enough at 18 to handle the full inheritance, then you can move the age of distribution or put conditions on the distribution.
Perhaps the biggest reason to use a trust is that you can protect the assets you wish to go to your minor children. Nobody can access the assets in the trust but the trustee, who you choose and appoint. You can ensure that the trustee is someone who will properly manage the assets and do what is best for your children.