Parents who wish to establish a living trust need sound financial and legal advice and counsel. Living trusts are a hot topic for many parents these days. If you have children and want to set forth a financial foundation for their futures that protects them and their assets from bad potential decisions, a trust is perhaps the best way to do that. There are a number of situations that may require a special trust for children in order to offer many different advantages for the entire family. If you’re thinking about whether you should set up a living trust for your children, there are many factors you should consider.
Getting Started with Parental Estate Planning
Parents who wish to establish a living trust need legal, estate planning, tax and in many cases accounting services. There is no denying that estate planning is complicated, but it’s important to have a financial plan in place just in case the worst happens. Allen Barron can help at each step of the process. Estate planning and tax firms such as the San Diego-based Janathan L. Allen, APC can help tremendously in the process. For parents, there are many special considerations, which single individuals and couples without children may not have. While all living trusts are basically variations of the same basic trust, there are some differences that parents need to consider along with their estate planning professionals.
However the trust is set up, it will have a beneficiary, a grantor, a trustee and funds or other types of assets that will be protected and structured according to the specifications of the trust. You can structure the funds so that your children have income while they are minors and a lump sum of inheritance once they reach a certain age. By customizing a trust for your children, you can ensure that the trust funds grow over time and create the most beneficial financial foundation, so that you have control over the funds during your life and even after you’ve passed on.
Different Types of Special Needs Trusts for Children
There are a number of special needs trusts that can help children in certain situations. Children who have drug or alcohol problems, for example, may benefit from an estate plan that protects the assets from their potentially poor decisions. Children who have a disability or special needs for which they receive government payments may also benefit from a living trust if their parents don’t want them to receive additional payments or a lump sum, so the money can be set aside for later. These are just two examples of special needs trusts; there are many other situations that may require specialized estate planning.
Parents who wish to establish a living trust require advice from multiple professional perspectives. We invite you to learn more about the integrated tax, legal, accounting and business consulting services of Allen Barron and contact us or call today to schedule a free consultation at 866-631-3470.