Trusts can be a better option for gifts to adult children

On Behalf of | Mar 16, 2018 | Probate And Estate Administration

When people in Nevada start to think about future planning, estate planning is often part of the equation. When people marry, have children or pass other significant life milestones, these events can draw attention to the importance of dealing with one’s assets after death. Estate planning documents like wills and trusts along with insurance policies and other non-probate transfers can help to ensure that one’s assets are properly transferred and not wasted on court fees.

Different structures can work alongside one another as part of a single estate planning strategy. For example, assets being left to minor children and adult children are often dealt with differently. Children and young adults often receive bequests as part of a trust where the assets are managed in the interests of the child until they reach a certain age when they are considered competent to manage the funds themselves. While trusts are often used as a matter of course for gifts to minors, they can be equally if not more beneficial when considering gifts to adults.

A trust can help to provide ongoing benefits to an adult child who may be prone to overspending or poor money management; by setting up a professional trustee, the assets will be managed by someone knowledgeable in money management. The trust could be set up to disburse a portion of the principal each year. If the assets are substantial, a distribution of investment income only could still provide a comfortable source of income to a beneficiary while ensuring the long-term viability of the trust.

For people thinking about the future for their family and their property, working with an estate planning attorney may be an important next step. A lawyer may provide sound professional advice and guidance on an estate strategy, including drawing up wills, trusts and other documents that govern the disposition of the estate.