As you’ve gotten older, you’ve realized how much you want to leave an inheritance behind for your children. You’ve also realized that they aren’t as cautious with money or your assets as you’d like them to be. You don’t want to see all you’ve worked for spent, sold or given away, which is why you may want to consider setting up trusts for them.
Trusts are excellent for passing on an inheritance because you can set up restrictions on them. For example, you can set up the trusts to pay out on certain birthdays, on special events, monthly or even annually. You can ask the trustee to hold the assets until your child turns 30 or even until they’ve held a job for a certain length of time. It’s up to you to set the restrictions, and it is then up to your children to meet them to receive the assets.
Many people set up trusts that pay monthly or annually. For example, if you leave your children $100,000 each, you may set up the trust to pay out $2,000 a month. Alternatively, you could ask the trustee to hold the money until your child turns 21 or until they get married. It’s up to you to decide the best method for paying out so that the assets are preserved over time.
If you haven’t yet thought about creating trusts, this is something you may want to discuss with your attorney. A good trust can go a long way in protecting your assets after you pass away. It could also help you encourage your children to stay on track so that they can reap the rewards of doing so.