Georgia residents who have young children should make sure that their estate plans include more than just a will. A trust is necessary so that the children will not be able to inherit assets outright when they reach the age of 18; it can ensure that the assets will not be squandered and will be managed responsibly as determined by the trust instructions left by the parents.
The party appointed as trustee of the assets may be able to support the beneficiaries and establish important financial boundaries and guidelines. For example, a trustee can assist the beneficiaries with creating an income flow that will see to all of their needs while keeping the trust principal intact. The trustee can also help the young beneficiaries become financially literate so that they will have the skills necessary to properly handle the assets when they are granted more responsibility over them.
In the majority of states, children have the legal right to make their own decisions when they turn 18 years old. However, even though they may be legal adults, it does not mean that they are mature enough to properly handle a sizable inheritance. Having trusted and experienced advisors in control of the assets, at least for a period of time, is a wise move.
There are certain protocols that can be incorporated into a trust to assist the children with becoming more adept at handling financial matters. For example, a trust can stipulate that the beneficiaries become co-trustees when they reach a certain age.
An estate planning attorney may help clients with determining which legal devices should be in their estate plan to ensure that assets are managed a certain way. Assistance may be provided for creating certain types of wills and trusts so that assets are preserved for young beneficiaries.
