For parents in Maryland, creating a trust can be a great way to ensure that your children receive your assets after you die. However, there are certain things you should consider to make sure your children receive assets according to your wishes. Otherwise, your children might not receive their full share of your estate, particularly if they’re still under 18 when you die.
How can you set up a trust for your children?
During the estate planning process, it’s recommended to create a trust for underage children. While you’d like to think that your children will be adults when you die, that might not be the case. Leaving a house, a car and thousands of dollars to a minor spells trouble for everyone involved. Instead, you should set up a trust and appoint someone to hold the assets until your child turns 18.
When you appoint a person to guard the trust, you should choose someone trustworthy who will monitor the assets and hand them over to the child when they turn 18. If you choose someone irresponsible, your child might not have much of an inheritance left when they reach adulthood.
You can also include your children in a lifetime trust that’s overseen by a trustee. Instead of withdrawing money whenever they want, your child would receive money at the trustee’s discretion. This can help them manage their money instead of splurging all at once. In addition, since your child isn’t in full control of the inheritance, that money won’t be divided if they file for divorce later in life. An estate law attorney may help you figure out all the details to do what’s best for your child.
How may an attorney help you plan your estate?
Planning your estate isn’t as simple as signing a few documents. An attorney may help you create a comprehensive estate plan that protects your loved ones and ensures that they receive the majority of your assets. An attorney may also help you write an airtight will that leaves little room for interpretation, reducing the chance of legal action.