You may have recently had a child brought into your world, but you’re worried that health issues or an unexpected accident could make it impossible for you to watch your child grow up. You can, however, leave your child something behind in the event you pass away.
So, what is this secret to ensuring your child grows up with everything they need? Here’s what you should know:
A trust can protect your child’s future
It can be hard to consider giving an inheritance to your child when they aren’t even old enough to care for themselves.
Trust funds, on the other hand, can set your child up to receive savings put aside for their well-being. The benefit of a trust fund is it legally protects the trust funds from being taken away to pay your estate’s debts, should you die. That makes it easier to ensure that your money goes to your child.
You can set up a trust fund to distribute your assets to your child after they reach a certain age, putting off their child’s inheritance until they are mature enough to handle the assets. You may make it so your child doesn’t receive their inheritance until they are 18 years of age or much later – or even dole the assets out at different life stages as their maturity increases.
You may include rules in a trust fund that will allow your child’s guardians to take assets from the trust only if they are applied to the care of their child. This makes sure the guardian isn’t using your child’s inheritance for personal usage.
If you’re interested in setting up a trust for your newborn, seek legal help. You may have more options than you realize to protect your child’s future.