San Jose, CA, residents with substantial assets often feel concerned about passing wealth to their children upon death. Too many restrictions can cause hardships for both adult and minor kids. Too few restrictions can lead to unchecked spending until the inherited assets have disappeared. Finding a balance that helps your loved ones without harming them is a goal shared by many Californians.
As estate planning laws have changed over the decades, more choices for wealth disbursement have become available. In this post, we will introduce you to four ways you can use a trust to pass assets to your heirs.
Four trust options for minor and adult children
Using trusts to provide for your children after you die can preserve their inheritance. These documents give you control over how your heirs can access their inherited assets. Choose a trustee you have faith in to manage trusts for your children. Here are four good ways to use trusts:
- When your children are still minor dependents, it is wise to have your assets held in trust on behalf of your kids, at least until they come of age.
- For adult children, you can opt for a trust in which they all have equal shares and can use the funds for education or other means.
- Another option for adult children is creating separate trusts for each one, which prevents careless spenders from frittering away their inheritance.
- A lifetime trust works for adult and minor children as it ensures they have money when they need it but prevents them from spending it all at once.
Of course, these are not your only trust options, but they can help you start thinking in the right direction. If you need more guidance, an estate planning lawyer can give you details about the options available to you.
We encourage you to continue reading our blog posts and website content for further insight into estate planning for your children.