Gene L. Osofsky, of the law firm Osofsky and Osofsky, can help you establish a trust for your non-adult beloved child.
There are advantages and disadvantages to establishing a so-called “kid’s trust.” Gene L. Osofsky, of the Law Firm Osofsky & Osofsky, is a great person to help you figure out the pros and cons. Advises Osofsky, “It may be worthwhile to prepare a trust for a minor child even if you believe your estate is relatively small and your significant assets are few.” Often, just being the beneficiary on an insurance policy may warrant a trust for a child. According to some experts, every parent should consider a trust for their non-adult child, or children.
It’s often overlooked that children who are minors cannot legally inherit large sums of money directly or as indirect tangibles such as a vehicle or proceeds of an insurance policy. If a parent dies and attempts to leave a large sum directly to a child not yet of age, the court will intervene and appoint a guardian to manage the inheritance for the minor child. “This guardian may not be the trusted friend or relative whom you might have preferred,” Osofsky says, “But if you engage an attorney during your lifetime to help you establish a trust; your child may be spared from having to grow up with an additional layer of bureaucracy impeding them as they mature into adulthood. Without a court-appointed guardianship to worry about, in effect you gain control over how your gift of money is controlled and spent – even if you are no longer physically around.”
According to Osofsky, other benefits of creating a trust for your minor child may also come into play. “Your trust may make arrangements to pay for said child’s education, delay the age when your child has outright access to the money, or even reduce applicable taxes,” he explains. But choosing the appropriate trustee is also crucial. “You need someone reliable, detail-oriented, and great at handling money,” Osofsky says. If that combination seems daunting, perhaps consulting with a specialist in Elder Law matters (like Osofsky) may help you decide.