Should Children Have a Trust?
March 9, 2022
A trust is a legal document that allows a person to hold assets on behalf of another person. This can be helpful for parents who want to provide for their children in the event that something happens to them. There are many different types of trusts, and each one has its own benefits and drawbacks.
In this newsletter, we will discuss the pros and cons of trusts for children, and help you decide if a trust is right for your family.
Types of Trusts
There are several different types of trusts that can be set up for children. The most common type is a testamentary trust, which is created when someone dies and their assets are transferred to the trust. Another type of trust is a living trust, which is established while the creator is still alive. Living trusts can be revocable or irrevocable, depending on the creator's wishes.
Benefits of a Trust
There are several benefits to setting up a trust for your children. First, trusts can provide financial security for your children in the event that something happens to you. Second, trusts can help preserve your children's inheritance and keep it from being squandered. Third, trusts can help your children avoid taxes on their inheritance.
Drawbacks of a Trust
There are also some drawbacks to setting up a trust for your children. First, trusts can be complex and difficult to understand. Second, trusts can restrict the amount of money that your children have access to before they reach the age of majority.
We’ll Help You Determine if a Trust is Right for You
Setting up a trust for your children can be a good way to provide financial security and avoid taxes on their inheritance. However, trusts are complex legal documents that require an experienced attorney's assistance in order to set them up properly. If you would like more information about setting up a trust for your children, Click here to Schedule a FREE Virtual Estate Planning Session. We’ll help you determine if a trust is right for your family.
Parenting Tip:
Helping a Child with ADHD. If your child has been diagnosed with ADHD, there are several things you can do to help them succeed in school and life. (1) Encourage your child to get plenty of exercise. Exercise is known to help improve focus and concentration. (2) Help your child develop a routine and stick to it. A routine will help your child stay organized and focused. (3) Make sure your child gets enough sleep. Lack of sleep can aggravate ADHD symptoms.