Estate Planning Lawyer
If you have children, you might have considered leaving a trust for them. However, you might not know where to start. Should you give them their full inheritance when turn 18? What should you do if your child is irresponsible with money? These are just some of the questions that may be running through your head. Here are several tips for setting up a trust for your children.
Always Hold Assets of Minor Children in a Trust
It’s not a wise idea to leave assets to children under 18. You should hold their assets in a trust and appoint a guardian to control the money for them. That way, you can ensure that their money stays safe. However, you shouldn’t choose just anyone to control their money. The person should be responsible with finances and treat their inheritance with the utmost care. If you, for example, appoint the role to a relative who has poor spending habits, it may backfire.
Distribute the Money in Stages
Instead of giving your children their full inheritances when they turn 18, distribute the money in several stages. For example, you could give them one-third when they’re 25, one-third when they’re 30 and one-third when they’re 35. This way, they will be less likely to spend all of their money on items they don’t truly need. They will be more likely to be responsible with their money and spend it wisely.
Set Up Lifetime Trust for Problem Children
If you have children with substance abuse issues or other problems, you may want to think about setting up lifetime trusts for them. The trustee you appoint will decide when to distribute money to your child. This way, you don’t have to worry about them spending the money irresponsibly.
Make a Plan for Your Child’s Death
It’s important to think about what will happen with the trust money if your child dies. For example, you could state that you want the remaining money to go to your other children or your grandchildren. You may consider giving your remaining children the power to direct where the money goes when the child dies.
Hiring an Estate Planning Attorney
Establishing a trust for your children can be overwhelming, but you shouldn’t let that prevent you from planning. You can always make adjustments to their trust in the future if you change your mind about something. Your next step is to schedule a consultation with a qualified estate planning attorney. An attorney can help you establish a valid trust that ensures your wishes are carried out. They can also provide you with valuable advice about how to distribute assets to your children.
Schedule a consultation with an estate planning lawyer O’Fallon, MO relies on today to discuss your plan in detail.
Thanks to Legacy Law Center for their insight into estate planning and creating a trust for your children.