Setting Up a Trust for a Child You Love

Gene L. Osofsky, of the law firm Osofsky and Osofsky, can help you establish a trust for your non-adult beloved child.

There are advantages and disadvantages to establishing a so-called
"kid's trust." Gene L. Osofsky, of the Law Firm Osofsky & Osofsky,
is a great person to help you figure out the pros and cons. Advises
Osofsky, “It may be worthwhile to prepare a trust for a minor child
even if you believe your estate is relatively small and your
significant assets are few." Often, just being the beneficiary on an
insurance policy may warrant a trust for a child. According to some
experts, every parent should consider a trust for their non-adult
child, or children.

It's often overlooked that children who are minors cannot legally
inherit large sums of money directly or as indirect tangibles such as a
vehicle or proceeds of an insurance policy. If a parent dies and
attempts to leave a large sum directly to a child not yet of age, the
court will intervene and appoint a guardian to manage the inheritance
for the minor child. "This guardian may not be the trusted friend or
relative whom you might have preferred," Osofsky says, "But if you
engage an attorney during your lifetime to help you establish a trust;
your child may be spared from having to grow up with an additional
layer of bureaucracy impeding them as they mature into adulthood.
Without a court-appointed guardianship to worry about, in effect you
gain control over how your gift of money is controlled and spent – even
if you are no longer physically around."

According to Osofsky, other benefits of creating a trust for your
minor child may also come into play. "Your trust may make arrangements
to pay for said child's education, delay the age when your child has
outright access to the money, or even reduce applicable taxes," he
explains. But choosing the appropriate trustee is also crucial. "You
need someone reliable, detail-oriented, and great at handling money,"
Osofsky says. If that combination seems daunting, perhaps consulting
with a specialist in Elder Law matters (like Osofsky) may help you
decide.

To learn more about East Bay elder law lawyers, East Bay elder law attorney, Medi-Cal planning, Medi-Cal planning lawyers and The Law Offices of Osofsky & Osofsky, visit Lawyerforseniors.com.