One of the most important aspects of estate planning is the overall effect it will have on an individual or couple’s children. Whether these are minor children who will need a guardian or adult children who are already on their own, the need for financial planning exists. A good estate planning attorney in Minnesota can help you determine what needs there are and how best to go about meeting them. It’s possible that creating a trust will be the right path for you.
When working with an estate planning attorney to determine if you should create a trust for your children, you will need to determine the answers to several imperative questions. The first one most people ask is “how much?” How much money will you be leaving for your children? If you are leaving a considerable amount (say more than $100,000), or if you have very specific intentions for the money, then your Minnesota estate planning attorney may advise you to put the money into a trust.
The trust itself can give you the opportunity to really outline how you want the money to be used. This can be helpful in ensuring that your children have the opportunities that you intend to provide. Money may be set aside for the purpose of a college education, with stipulations that it is not to be used for other purposes (like a new car or a wedding, for example). For minor children, this type of control may seem even more important, as the money in the trust can be designated for basic necessities such as food, medical care, and clothing. This discourages a guardian from mishandling the funds.
Another question to ask regarding a trust has to do with when you want the funds to be dispersed. Some people choose to defer the funds for a set number of years or until their child(ren) reach(es) a specific age. This can be advantageous because very young people may not yet possess the maturity and life experience to handle a large sum of money well. Access to a trust at a young age can also impeded the child’s drive to pursue his or her own pursuits. An estate planning attorney can offer guidance in how other parents have chosen to deal with these concerns.
There are a lot of considerations to be made during the estate planning process. A good attorney will help to identify which issues are the most pertinent for your particular situation and will then offer suggestions and solutions to any obstacles or concerns you may be facing. Estate planning professionals understand the importance of using wills, trusts, and other tools in order to provide financial security for the next generation.
