Trusts are powerful estate planning tools designed to ensure that assets left to your children are managed for their benefit. Establishing a trust minimizes the chances that someone else will usurp their inheritance and actually allows the wealth left behind to grow. However, setting up a trust can be complex, so below are a few elements to consider before beginning.

What to Keep in Mind for a Trust for Minor Children

1. Choose a Reliable Trustee

A trust is a separate legal entity managed by the trustee for the benefit of a beneficiary. The trustee is responsible for making investment decisions, approving expenditures, and ensuring the rules outlined in the founding documents are followed.

This person will have a great deal of influence over how your assets are managed after your death, so select a responsible individual who doesn’t have a personal stake in the outcome. For the sake of impartiality, many people choose to have a financial institution or their estate planning attorney serve as the trustee.

2. Decide on the Terms of the Trust

One of the most attractive benefits of a trust is maintaining control over how your estate is distributed. If you leave assets behind in a will, minor beneficiaries will receive their share of their assets when they turn 18.

In establishing a trust, you may specify that your heirs should inherit property on their 21st birthday or when they complete college. Many parents choose to distribute inheritances a portion at a time, which increases the chances that the funds will be used responsibly and gives any investments more time to grow.

3. Explore Your Trust Options Carefully

Estate planning law makes a variety of trust options available, each with its own unique advantages and drawbacks. For instance, an irrevocable trust can provide significant tax benefits, but it can’t be altered after it’s been established. An attorney can help by reviewing your situation and recommending the trust types that best suit your needs.

As one of Baldwin County’s most respected estate planning firms, J.P. Coleman Law, LLC, Attorneys at Law, provides personalized solutions for protecting your wealth and your family. With their extensive experience and dedication to their clients, you can rely on their team to guide you through your options and help make the best decisions for those you’ll leave behind. Visit their website for more on their estate planning services or call (251) 947-6247 to schedule a consultation at their office in Robertsdale, AL.