When you were 18-years-old, were you financially responsible? For the most part, 18-year-olds are first beginning to understand the importance of money, how to save it, and what to spend it on. As a result, many parents worry that their children will receive their inheritances before they are mature enough. Luckily, you have various options. Read on to learn more.
When do Children Receive Inheritances?
Many parents leave their children assets in order to continue supporting them throughout their lives or to give them the means necessary for a bright future. In order to do this, is incredibly important to create a will. If you pass away without creating a will, this is known as dying “intestate.” This means that your assets will be distributed by the state of Michigan, rather than according to your wishes. In this case, your child will likely receive his or her full inheritance at the age of 18. The same is true if you create a will but do not include any age restrictions. Regardless of how smart and responsible they are, many children are not equipped to handle this amount of money. Luckily, there are options.
What is a Trust?
One way to protect your child’s inheritance is by creating a trust.
A trust is a legal document that is used to manage certain assets. The parties involved in a trust include:
- Trustor: the person who creates the trust
- Beneficiary: the person who will receive the assets allocated in the trust
- Trustee: the third party assigned to manage the assets on behalf of the beneficiary
In this case, you can put your child’s assets aside where they can be managed by a trusted third party until your child is of a certain age and can then be in charge of the assets themselves. Additionally, a trust can allow you to give your child their inheritance in installments, rather than all at once, which can help ensure that the assets will last.
It is important to make sure your children are supported throughout their lives. Reach out today to discuss your options with a skilled and experienced estate planning attorney. We want to give both you and your children the peace of mind to go into the future feeling secure and prepared.
Contact our Firm
Sometimes, divorce, family, and estate matters are difficult to navigate. Fortunately, they do not have to be with the assistance of a compassionate, knowledgeable attorney who is willing to guide you every step of the way. If you need a seasoned firm to help you with any divorce, family or estate-related matter, please do not hesitate to contact Collis, Griffor & Hendra today to schedule a consultation.