As a financial advisor, one of the topics that comes up a lot when meeting with people is death.
Nobody, including myself, wants to dwell on the topic of death, but for better or worse, it is going to happen to most of us someday.
My hope for all of us is that it happens after a well lived life, but tragically however, most of us know of someone who has passed away long before we felt they should.
And unfortunately, we as parents need to consider what would happen to our minor children if we should pass away prematurely.
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It is my belief that one of the most important things we can do as parents is to protect our children, especially when they are minors.
If we die with minor children, the Court will appoint a Guardian for that child; therefore, if you want to determine who that person will be, you need to designate your choice of the Guardian in your Will.
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Without a trust, the Guardian will also take charge of the assets going to the child, all of which will be under court supervision (with all of the costs and delays involved in that process).
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With a trust, when minors are the beneficiaries, our designated successor Trustee can manage and invest the trust funds, free of the costs and restrictions that arise when the Court appoints the Guardian.
Another benefit of a trust is that we can choose who will manage the assets on behalf of our minor children. We may choose the same person as the guardian, or we can chose someone else to manage the funds.
Additionally, with a trust, we can continue the management of a child’s assets to whatever age we desire. For example, we may not want to have all the remaining assets given to our children when they reach age 18 (the age at which ALL guardianships must terminate).
The management of a child’s assets in a trust can include disbursement of assets and/or funds in increments, according to our directions (e.g., 1/3 distribution at age 25, 1/3 distribution at age 30, and the balance at age 35). Of course, during this period, the trustee can use any or all of the trust principal for the benefit of the beneficiary (e.g., education).
Obviously there is much more to know about the benefits of a Living Trust!
Contact Me Today to learn more establishing a Living Trust for you and your family!
*The articles on this blog are for education and entertainment purposes only and should not be taken as financial or legal advice. See legal disclaimer for further information. If you would like more information about how something listed in any of my posts specifically affects you, please feel free to comment below, email me, or call me anytime.