When building your estate plan, you want to include a will or trust. They are both ways to pass assets to your heirs, but with a trust, your assets can be given now, in the future or wait until after you pass away. There are many decisions when establishing a trust, and one is when to pass the inheritance to the beneficiary. With a trust based on age, you can decide at what age the person will inherit your money.
There is no ‘one and only’ type of trust. Instead, there are many types, making one perfect for you to customize and build to your needs. Some examples are:
If set up correctly, a trust allows you to define the distribution and use of funds rather than simply leaving an inheritance. An experienced estate planning attorney can help you decide what type of trust is best for you and how you want to pass an inheritance to your loved ones.
A trust based on age can be distributed once or periodically over the beneficiary’s life, especially if the heir is a minor and cannot accept the inheritance until they turn 18. Sometimes, the distribution of large sums of money may be better when reserved for when the beneficiary is more mature and established. And you may not want to give an 18-year-old college student $1 million all at once.
Let’s say you want to distribute the inheritance to an individual in portions at age intervals. You can give:
A trust built to distribute based on age is helpful if you are worried about how the beneficiary will handle the inherited wealth.
Setting up a trust that is distributed based on age may be best for you and your loved ones. Talk to an experienced estate planning attorney to prepare for your future and the future of your beneficiaries. Contact us at the Estate and Probate Legal Group today at 630-864-5835.
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