Preparing for Your Child’s Future

So, you have a minor, a child who you love more than anything else and you want to make sure he or she is taken care of. I want to help you do just that.

The thing I want you to consider is a minor’s trust, not trusting minors, a minor’s trust. What exactly is a minor’s trust?

A minor’s trust is a trust you set up as the trust store for a minor. This minor can be anyone. It can be a grandchild, it can be a niece, it can be a nephew. However, the reason you set up this trust is because a minor can’t technically hold and manage property for themselves and therefore, if you are a grandparent, if you’re an aunt, if you’re a friend and you want to leave property, or if you want to give a gift to a minor, the greatest tool I can think of is a minor’s trust.

You would create a minor’s trust because #1, you might not want to give the gift directly to the parent. You might not trust the parent. Maybe you just want to be the person who manages the property for that minor that you want to leave the gift for. Maybe it’s a situation where you’re trying to avoid whatever confrontation will happen when you create the minor’s trust. You can create this minor’s trust while you’re alive. That’s called intra vivos. Or you can create the minor’s trust through a testamentary declaration. So, within your will, you can say, I want to create a trust for little Johnny and I want you to put X amount of the estate into that trust. For little Johnny in that situation, that is a testamentary minors trust. It is actually funded after you pass away and after your debts have been settled by your estate.

What’s so great about a minor’s trust is the fact that you can select who will be the trustee. You can choose to be the trustee while you’re alive, but you can also designate another person after you pass away to be the trustee for that trust. You could be in a situation where you can’t trust that parent with any assets for that minor. You can choose a third party to do it instead. You can choose a bank. You can choose your child. You can choose anyone to administrate the trust for that minor. Therefore, you have the best of both worlds. You can take care of this wonderful child while you’re alive and make sure your legacy lives on even after you’re gone.

Megone Trewick, our Lead Estate Planning, Probate and Guardianship Attorney is ready and waiting to help you today.

Call our office at: 281-810-9760 to begin preparing for your loved ones’ futures today!

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