Should You Tell Your Kids if You’re Leaving them a Trust Fund?
Cincinnati living trust lawyers can assist you with all of the complex decisions that you must make surrounding the creation of a trust. You’ll need to assess whether or not creating a trust is the best choice for you and will need to work with an experienced attorney to find out which trust type will provide desired benefits.
One big reason why many people create a trust is because they want to leave an inheritance for their children but they don’t just want their kids to get all of the funds free and clear. Parents may be concerned that their child will be under 18 when he or she inherits, which could result in the court naming a guardian for the funds and which could leave the child inheriting a large sum of money without any guidance as soon as he or she turns 18.
Parents could also be worried that a child will spend money irresponsibly or that a child will be disincentivized to work if he or she knows that a large inheritance will be coming without limitations or conditions. And, in some cases, parents want to create a trusts to provide assets while ensuring continued eligibility for means tested benefits, or parents wish to create a trust so an inheritance can pass more quickly to their kids outside of the probate process.
Whatever your specific reasons are, Zimmer Law Firm will help you to select the right type of trust and will work with you to ensure that the trust is affordable. We can also provide you with insight and information into some of the other concerns you have. Some parents who create trusts, for example, are not sure if they should tell their children about the inheritance coming their way in the form of a trust fund, or if they should not discuss this type of financial detail with their children.
Arguments in Favor of Telling Your Kids You Created a Trust
Telling your children that you have created a trust fund for them can be very helpful for many different reasons. Your kids will know what to expect after you pass away and will be able to make financial plans. If your children have questions about any conditions that you have placed on their use of the funds or if they are uncertain as to why you set up the trust the way you did, they will be able to ask you those questions. Because you can explain your reasoning, kids may be less likely to be angry or frustrated if the trust imposes limits on their ability to access the cash.
Talking to your kids in advance about the trust also reduces the chances that a trust would be contested. Typically, it’s not as easy to successfully contest a trust as it is to contest a will, especially if you have created a living trust. Because you likely will create the living trust with help from Cincinnati living trust lawyers long before you actually pass away, you’ll interact with the trust during your life. This means that it’s much more difficult to argue the trust didn’t actually reflect your wishes. There is still a risk that your kids could try to contest the trust, though, but if you talk with them about why you made your decisions, they may be less inclined to decide this is a desirable course of action.
Arguments Against Telling Your Kids You Created a Trust
There are also a few arguments against telling your children you’re leaving them a trust fund. Parents may not want kids to know if they’re going to inherit a lot of money because a big inheritance can sometimes be a disincentive to trying to achieve success independently. If a child is likely to be angry about the conditions on the trust or to be mad about any other issues related to his or her inheritance, parents may also not want to deal with the family fallout during their lifetime.
Getting Help from Cincinnati Living Trust Lawyers
Cincinnati living trust lawyers at Zimmer Law Firm will answer all of your questions on trusts and will help you to create a legally enforceable trust that allows you to achieve the goals that you have for your children’s inheritance. To find out more about the ways in which our legal team can help you, join us for a free seminar. You can also give us a call at 513.721.1513 to speak with a member of our legal team about the personalized help that we can provide for your specific situation.