Through a trust, you can specify an age at which your beneficiaries may receive their individual share of their inheritance. Depending on the ages of your beneficiaries, you may want to distribute money at designated intervals rather than all at once.
Distribute Assets as Needed or in Lump Sums
When you set up a trust for a minor child, you have many options for asset distribution. You can authorize a trustee to make distributions whenever expenses need to paid, for example, for school supplies at the beginning of the school year or for vacations is that is something the trust will cover. A trustee has a high legal duty to protect the trust assets and to follow the trust instructions when making distributions.
You can also designate ages at which a percentage of the assets become the property of the beneficiary. You may want the beneficiary to receive only 5% when he turns 16 and then more when he turns 18 and even more when he turns 21. The options are almost endless. Based on the unique personalities (or financial responsibility) of you beneficiaries and on the size of your trust or estate, you can tailor a trust to accomplish your family’s goals.
Getting Legal Help
Experienced Estate Planning Attorney Elga Goodman can help you choose a personal representative who you can trust to provide the most ethical financial management. Call us today at 973-841-5111 to learn more.