Trust Fund Kids: Keeping Your Child’s Inheritance Safe – The McNamara Law Firm

Estate planning sounds pretty boring, but it’s actually incredibly interesting when done correctly. It’s the way to control your money and assets for your benefit while you’re alive (think stroke, dementia, illness), and also allows you to plan for your heirs after you die. If you heirs include minor children or a child who isn’t the best with money, then even more reason to have a plan!
Don’t allow your kids to end up like those characters in classic children’s tales who squander their riches. Maybe your child has a tendency to have bad relationships, be easily influenced, have creditors, or engage in risky businesses. Maybe your child is young, either by age or maturity level. With a child’s trust within your Living Trust, you can secure your kids’ financial future and control the outcome.
First, select a Trustee – someone reliable who will take their legal duties seriously and follow the written trust instructions you have specified clearly. A Trustee has a “fiduciary duty” to act properly and carry out the terms of the Trust. All your legal directions are contained within your Trust – no guessing needed by the Trustee. For example, you could state that the Trustee can use the inherited trust funds for the child’s education, healthcare, important life enrichment experiences, and include other areas that are important to you. Set the roadmap for sensible spending by the Trustee, rather than the child at the Porsche dealership.
Without planning, the court may need to get involved. The outcome could be problematic, and very expensive. Minor children cannot legally manage their own money, and many young adults shouldn’t. Take the time to properly plan – its important.
For an appointment, please call the McNamara Law Firm at (661) 287-3260 or visit www.theMcNamaraLawFirm.com.