“At what age should my child inherit money?”
It’s one of the most common questions that most people think when thinking about the future of their children.
The question may seem very simple and straightforward on the surface, but in reality, it’s quite complicated and needs careful consideration.
The decision parents take about their estate can potentially shape the course of life for their beneficiaries.
For instance, it’s not a good idea to hand over lump sum cash to a teenager. The good thing is that you have several estate planning options available.
Let’s find out more!
Estate Planning Options
Testamentary Trust
A testamentary trust is a useful estate planning tool to distribute your assets to the beneficiary, i.e., your child as directed in the will. It only takes effect after you pass away.
The executor takes care of the probate process and follows the terms of the testamentary document to pass on your estate to your child.
A testamentary trust help preserving your assets for your children. Particularly, if your kid is a minor, it’s a great option to manage your estate until they reach a specified age.
Revocable Trust
Unlike a testamentary trust, a revocable trust is separate from a will. It involves creating a legal entity to hold ownership of an individual’s assets.
Typically, a close relative or friend is chosen as a trustee who manages your estate on behalf of your children until they reach a specified age. At that point, the assets will go to them directly.
A revocable trust also protects your assets from the creditors and irresponsible spenders.
At what age should a child inherit money?
It’s hard to determine a suitable age for your child to inherit money. There’s no guarantee that they will spend the money more carefully when they turn 25-year-old or reach in their 30s.
However, building a trust for your child can provide you with an opportunity to distribute your money in a way that you deem most appropriate.
You can put in specific language related to the inheritance of your assets and instruct the trustee to pass on your assets in segments.
For example, you can leave a specified amount of money when your kid turns 18, 25, and 35 to ensure they don’t end up losing money due to poor financial decisions.
In addition to that, you can add a stipulation to make the funds contingent on specific events, like completing a degree or securing a full-time job.
Alternatively, you can make provisions to pay for certain expenses like a student loan, wedding, medical costs, etc.
If you want to create a plan to distribute your estate in specific ways and looking for an experienced estate planning lawyer in Chico, California, get in touch with us today! At the Law Offices of Ron Marquez, our experienced attorneys will devise a will where you designate an executor, beneficiaries, and how your assets must be divided.
Call us at 530-332-8110 for a free case evaluation.
The blog does not provide legal advice and written for information purposes only. Reading the content of this blog or information contained on this site, or the transmission of information from or to this site does not constitute an attorney-client relationship.
Looking For A Probate & Estate Administration Lawyer In Chico? Marquez Law Offices Can Help
Estate planning attorneys in Chico, who are acquainted with your financial and personal plans and objectives, can help you manage your estate and/or establish a trust. Lawyers who specialize in estate planning can help with a wide range of personal and financial issues, including the transfer of assets upon death.
A thorough approach for handling and transferring assets, premiums, and health directives is created by creating an estate plan, which is a necessary step in your life. People, households, and spouses who wish to prepare in advance for the future should put up an estate plan to ensure that the many components of their net worth are handled as a single unit and passed to the beneficiaries they desire.
Why Do You Need An Estate Planning Law Firm In Chico?
It takes a lot of forethought to put together an estate plan. You must complete specific requirements if you intend to handle your estate planning on your own. You could also make blunders if you don’t have an attorney’s help. Details like taxes, which are critical to estate planning, may slip your mind. As a result, your property may not be allocated in the manner you like. Suddenly, you’ll have no control over anything.
To be valid, estates must adhere according to state statutes and laws. This can be a difficult task. Anxieties might build up when one considers death and makes preparations for it. Get help from Marquez Law Office to ensure that your assets are handled correctly. An estate plan can be crafted to meet your specific goals. Our trusted estate planning attorneys in Chico can meet all of your legal needs.
