Q: Why is it so critical to create a trust if I have minor children?!

| Jul 7, 2021 | Estate Planning, Q&A, Trust And Estate Administration |

A: Under the California Probate Code, if a minor inherits more than $5,000, then a formal court custodianship must be opened and administered by the Court until the child turns 18, at which time any remaining funds would be delivered outright (with no restrictions) to the recently turned adult. In this sense, the trust serves two integral purposes: 1) to maximize, expedite and leverage the value and administration of the child(ren)’s inheritance through a private process, designed by you and entrusted to a close family member or friend; and 2) to eliminate the possibility of your child(ren) foolishly spending down the entirety of their inheritance the day they turn 18 (typically by including a provision in the trust that such final outright distribution not be triggered until the child reaches the age of, for example, 25 or 30).

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