As a Florida parent, one of your primary goals may be to ensure that your children have the support and care they need today and in the future. While you plan to be around to provide these things for them in person, it is impossible to predict the future. It is prudent to take steps to ensure they have what they need by creating a complete estate plan. This may include setting up a trust.
A trust is an estate planning tool that allows you to set aside and designate assets for a specific use. These are not tools reserved only for the rich and famous, but they allow people of all income levels to decide what happens to their money and assets after their passing. A trust ensures that you can leave money for the care and support of your children in a way that is safe and beneficial long-term.
Taking care of your minor children
If you pass away, you want to make sure your kids have what they require for their basic needs and long-term costs, such as college. While you can pass assets to a minor directly through a will, this is most likely not the ideal way to accomplish this goal. Consider the following facts about why you could benefit from a trust:
- A minor cannot be expected to manage money and make important financial decisions until a certain age.
- Assets left in a trust do not have to go through the probate process.
- You can name a trusted and responsible individual to oversee the distribution of assets in a trust.
- You can structure the trust in a way that will allow you to manage its assets during your lifetime.
- You can decide exactly how and when your children can access money left in the trust.
Long-term security is the goal of any estate planning decision. If you are the parent of minor children, you may benefit from learning how you can create a plan that will allow you to look to the future with confidence. A trust allows you to provide for your kids, even if the unexpected happens. A careful assessment of your wealth and specific goals can determine what terms you should use for your trust and how you can create a plan perfectly suited for your individual goals.