You’ve probably given careful consideration to whom you want to be your child’s guardian. But did you know that guardianship ends when the child turns 18?
A guardian is required to turn over all remaining funds to the child on their 18th birthday, and the child no longer receives court supervision or protection for the money. For some young adults, inheriting a large sum at 18 may be too much responsibility.
A living trust is a tool that parents can use to assure their child will have financial assistance and guidance after the age of 18. The trust provides guidelines for using trust money. These guidelines can be strict, loose, or somewhere in between. And unlike guardianship, there is no specific date on which the trust must end.
Since you know your child best, you can shape the trust to provide as much, or as little, assistance as you think appropriate for your child.
A living trust is a flexible instrument that can be fashioned to fit the needs of every parent and child. Please give us a call if you’d like to learn more about incorporating a family trust into your estate plan.