Trusts for Children
Underage children and many young adults not prepared to handle a substantial inheritance if their parents were to die prematurely. They need instruction, practice and time to mature before being put in charge is significant amounts of money. Most of our clients are attracted to the idea of leaving the inheritance of children, grandchildren and young adults in trust for a period of time with someone else in charge of making investment and distribution decisions until the child has grown up. Such trusts can be used to support the child and provide education and medical expenses until the child reaches the age when they are capable of handling their own finances. You can name a bank or family members to act as trustee over the wealth until the child has reached a specified age.
A trust for children can also be a good way to protect the inheritance from a child’s creditors or a divorcing spouse. Many of our clients decide to leave money and property to children in trust even when the child is capable of handling the wealth. In such cases, the child can serve as the trustee or co-trustee of their own trust, making their own investment and distributions decisions.
Children who are on Medicaid or Social Security could be disqualified from government benefits if they were to receive even a modest inheritance. We help our clients establish Special Needs Trusts when they have children on government assistance to assure that they can continue to receive such benefits after the death of the parents.