Determining whether a trust makes sense
While some California parents may think that creating trusts for their children are only meaningful if they have a lot of money, this is not necessarily the case. There are several good reasons why parents should consider a trust regardless of how much money that they make. For instance, a trust may be helpful for those with children from a previous marriage or if an adult child is going to come into a lot of money.
Language in the trust can stipulate who gets cash or other assets and when they are to be distributed. For example, the trust could state that a child gets a portion of an inheritance at a certain age and the rest in equal increments every few years. An outside party may manage the money, but those who create a trust are in some cases allowed to approve distributions prior to when the trust says they are to be made.
Another benefit of putting assets into a trust is that it avoids probate and the records are kept private. This means that assets may be distributed faster and without the ability for other family members or the public to see who was a beneficiary. While trusts may be more costly when compared to creating a will, those with a complex financial situation may save more money in the long run.
People who have substantial assets may benefit from creating a trust for their children or other beneficiaries. Trusts may make it easier to control when a child receives an inheritance. It may also make it easier to provide for special needs children without limiting their benefits from the government. An attorney may assist in tailoring a document to a client's particular needs.