Perhaps your main reason for setting up an estate plan is to care for your loved ones after you’re gone. And providing for your children is of the utmost importance. You may create a trust instead of a will to provide financial support continuously. The next question is how to choose a trustee to manage your child’s inheritance.
A Trustee is different from a guardian. A guardian is someone who takes custody of your child and raises them. But establishing a trustee to control their finances is sometimes best kept separate.
Establishing a trust and trustee can be done for either a minor child or an adult child.
A trust may not always end when the child turns 18, it may continue until they have reached an age you determine when they will be financially responsible. It may be when they are 30, 40 or meet special circumstances… or never.
If you have a son or daughter who loves to spend money and want to ensure their expensive habits do not get out of control, then you may choose a Spendthrift Trust. Or if you have a child with special needs, either physical or mental, and need to ensure their long-term care, you may want to set up a Special Needs Trust. Or you can establish a Sprinkling Trust to ensure a constant flow of small amounts of money is given to your child.
No matter which you choose, you will need to name a trustee.
Of course, you’ll want to choose a trustee who wants what is best for your child. But there is that area between giving the child everything they want and giving them what they need. You don’t want someone who will simply say ‘yes’ to all their whims, but you don’t want someone too strict that they will not allow your child to chase their dreams.
Who do you choose?
Working with an experienced estate planning attorney will inform you of all your trust and trustee options.
Establishing a trust and determining a trustee is a huge decision. Talk to an experienced estate planning attorney to prepare for your children’s future. Contact us at the Estate and Probate Legal Group today at 630-864-5835.
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