For many people in West Virginia, one of their goals in life is to be able to leave an inheritance for their children. However, the age of the potential beneficiaries could potentially impact the estate planning process. While many people recognize the importance of leaving a trust for young children who will inherit, some professionals argue that using trusts for adult children can be equally beneficial.
Regardless of their age, some people have difficulty managing their money for a variety of different reasons. Establishing a trust can ensure that a beneficiary has the necessary guidance when it comes to an inheritance. Having a trust professionally managed can help ensure that the funds will last.
In addition to professional management, a trust can also come with rules regarding its disbursements. A trustor has a variety of different options when setting parameters. For example, he or she can give a trustee power to decide whether a distribution will be made or have the trustee directly pay for necessary expenses, such as a mortgage or rent. Trusts can also protect an inheritance from the beneficiary’s creditors as well as prevent it from being divided in a divorce.
Trusts are an important tool in the estate planning process. They provide a great deal of flexibility that other elements of a plan, such as a will, are unable to do. Because laws regarding trusts and other elements of planning an estate vary from an state to state, those going through the process in West Virginia often seek an experienced professional to guide them through it.
Source: Forbes, “7 Big Estate Planning Mistakes: Leaving Assets Outright To Adult Children“, Bob Carlson, March 6, 2018