What Is a Children’s Trust?
A children’s trust can be a useful estate planning tool for families with small children. It allows parents to leave assets to children while controlling the age at which they have access to them. Your estate lawyer in Baltimore can help you decide if this kind of trust could be right for you.
With a children’s trust, benefactors assign assets to a trust for a child and identify a trustee to control the assets until the child reaches an age set by the benefactor. For instance, while estate planning, parents may decide to set up a trust for their toddler and name a close relative as the trustee. The trust says that the child cannot control the inheritance until they reach age 18. If both parents are deceased before the child reaches 18, he or she receives the trust but the trustee manages it as directed by the parents. If both parents are deceased after the child reaches 19, he or she receives the inheritance without the involvement of the trustee.
Children’s trusts put many parents’ minds at ease while estate planning. Your estate lawyer can guide you through the process of establishing your trust.