Parents in Nevada who have multiple children know that different children have different talents and struggles. While one child may be excellent at living on a budget and investing, another may spend freely without thinking about the future consequences. When creating an estate plan, it may be wise for a parent to take their children’s individual spending habits into account while deciding how to disperse the inheritance.
If a parent has an adult child who needs help managing their finances, they may decide to leave that child’s inheritance in a trust. Some parents feel guilty about leaving one child an inheritance outright and another child an inheritance with restrictions. However, if a child really has trouble handling money, a trust fund is an effective way to help them remain financially stable.
When a parent sets up a trust fund for one of their children, they will have to name a trustee who will oversee the trust and make distributions. To avoid family conflicts, it may be wise to name a trusted family friend or a financial institution as the trustee rather than one of the beneficiary’s siblings.
An estate planning attorney may be able to help a parent decide what kind of trust fund to create for their child. Trusts can disperse funds in many different ways depending on the beneficiary’s desires. A trust might be set up to make fixed annual distributions or pay for the beneficiary’s expenses as by the trustee. With help from a lawyer, a testator could lower any potential conflict over their estate.