Since your child cannot inherit directly due to age, someone will need to manage those funds until your child reaches the age of majority, usually age 18. If you want to know with certainty who will control those funds you need to set up a trust. The proceeds will then be directed into the trust and the individual you appoint as trustee will manage the funds and make distributions according to the terms of the trust that you created. Not only does this ensure that someone you choose will manage the funds but it also allows you to decide how the funds are used. Furthermore, it can prevent a lump sum disbursement when your child reaches the age of 18.
Topics covered in this report include:
- What Can Happen Without an Estate Plan in Place?
- Choosing a Guardian
- Planning for Incapacity
- Your Child’s Inheritance – When and How Should It Be Disbursed?