© 2013 Robert L. Shepard, Professional Law Corporation
How can Estate Planning help me set aside funds for my children?
Having children is a very important reason to do some estate planning. Without it, the money will be given to a guardian for their benefit and the child will receive it outright at age 18 under the California Uniform Transfers to Minors Act. Of course, before they are 18 they handling of the money requires a lot of government supervision, and that is not cheap.
Many people feel it is wiser to delay distribution until the child is older, or to spread out the distribution more evenly over time. With the creation of a trust, you can make sure their basic life needs are provided for, but hold off distribution of additional assets until they reach a later age, or when a certain condition is met, such as they graduate college, or have a child of their own. It’s your assets, you can decide not only who but also when they receive them. You can give the trustee of such a trust a little or a lot of discretion on how the money should be used.