The benefits of using a trust for children

On Behalf of | Feb 28, 2016 | Trusts

Nevada residents may have negative connotations associated with “trust fund children,” but the trust is a useful tool that many might want to consider during the estate planning process. The amount of wealth and assets one has is part of why a trust may be merited. There are some other reasons a trust could be necessary.

A trust might need to be used with a will if one owns a business, has property in different states has children from different marriages. Trusts also provide more flexibility than wills.

The control a trust offers is helpful when leaving a substantial sum to offspring. The grantor might want money distributed at certain intervals rather than giving children access to the total all at once. A grantor can have the trustee manage the trust’s assets and make exceptions for early distributions for things like education or medical emergencies.

Someone may wish to use a trust because of a desire for privacy. Wills must go through the probate process, which is not only public but can also be lengthy and expensive. Trust assets can be quickly distributed without the need for the supervision of the probate court.

Trusts could be useful whether one has children or not, as they can serve different functions. Those who want to donate all or a large portion of an estate to charity could use a trust to facilitate the process and may get tax benefits while alive. They also serve important functions when a heir has special needs. An estate planning can be of assistance in creating a vehicle that fits the financial and family goals and desires of a particular client.