Having children may prompt many people in Texas to think more about planning for the future, especially because they want to ensure that their kids will be taken care of in case of a tragedy. However, this can also be a reason to do more with an estate plan than simply creating a will. Simple wills are appealing to many because they are straightforward and can be completed quickly. However, they are less appropriate for passing on assets to minor children. People who want to make a bequest to their young children may wish to consider a trust in addition to a will.
Trusts can enable people to create a mechanism to provide for their children under the age of 18. In addition, many people do not want their children to inherit their entire estate as soon as they become legal adults. A trust can help to make sure that the children are provided for and that they receive the full benefit of the estate when they are better able to manage their finances. By having a trustee manage the funds, parents can make sure that a responsible person is looking out for the future interests of their children.
In essence, a trust can almost fulfill the function of parents to provide guidance and boundaries for children. Parents can use a trusted family member or a professional trustee to manage the investments and make disbursements to the children. This can help provide them with income as well as support their education and other costs.
Trusts are not only for the super-wealthy; they can be important when passing on average household wealth to children. An estate planning attorney may provide advice and help people to draft wills, trusts and other documents that reflect their goals and provide for their loved ones.