As a parent, your children are your top priority. Whether you have a newborn, a toddler or a teen, your love for your children and desire to see them succeed will not falter.
While much of your focus will be on playing an active role in their upbringing, you also want to make plans in case something happens to you. A trust is just one estate planning instrument that can benefit your children in a number of ways.
Trusts can fulfill specific purposes
Your child may have many strong points, but finances might not be one of them. Not all of us are cut out to manage large sums of money, and a trust can ease some of this burden. You can specify in a trust instrument how the money is to be used. For example, you may want the money to go towards a down payment on your child’s first home. Additionally, you may want to cover their educational fees. In any case, a trust can bring these desires to fruition.
The longevity of trusts
You may have built up considerable wealth over the years, which means your children are set to receive a substantial inheritance. You may want this money to be disbursed in increments rather than fall into their hands in one go. You might want to set up regular payments or ensure that your child comes into some money when they reach the age of 21. A trust can offer you this flexibility that can make your child financially stable for many years to come.
Trusts are just one aspect of estate planning, so it’s wise to explore your options. Having a well-crafted estate plan in place can bring you peace of mind and stability for those you treasure the most.