Trusts for Young Beneficiaries
While the law treats an 18-year-old as an adult, they are usually not mature enough to handle a large inheritance. Without a plan in place, a young beneficiary can receive all their inheritance at once and use it however they choose.
If you want to protect your young beneficiaries and make sure their inheritance is used wisely, you may want to create a trust. In your will, you can state that if a beneficiary is under a certain age (such as 25, 30, or 35), their inheritance will be placed in a testamentary trust.
You choose a trustee — someone you know and trust — to manage the funds. The trustee can use the money for the beneficiary’s care, education, and support until the age you specify. Once the beneficiary reaches the designated age, the remaining assets can be transferred to them.
Trusts created in a will are overseen by the probate court, which appoints your chosen trustee and requires them to file regular reports. Some people prefer this oversight because it adds accountability. Others prefer privacy and less court involvement, which can be accomplished with a living trust created outside of the will. In some cases, a custodial account may also be enough to meet your goals.
Every family’s situation is unique, and Favret Law can help you choose the right option to protect your loved ones and your legacy.
Plan Ahead for Your Family’s Future
Making thoughtful decisions now can protect your children and young beneficiaries later. At Favret Law, we guide families through creating trusts, wills, and other estate planning tools to ensure your wishes are honored and your loved ones are cared for.
Contact Favret Law today to schedule a consultation and start building a plan that gives you peace of mind.
