Do I need to set up trusts for my children?

If you and your spouse pass away when your children are minors or young adults, you most likely will want a trust to be set up for them. Your lawyer can write into your will that you would like to create a trust for each of your kids. In the will, you will name a trustee to manage and invest the trust and make distributions to your child for any needs they have. Many people would like their children to have full control of the money only once they have some life experience, so you could choose to wait until they are 25, 30, 35 etc. All this information can be specified in the will. You can also request specific amounts to be distributed for life milestones, such as college graduation, their wedding, starting a business, or buying a home.

If planning too far ahead for an imaginary and unfortunate scenario sounds hard, it’s because it is hard. Be frank with your lawyer and tell them if you do not know the best schedule for a trust payout. The lawyer most likely has a good recommendation.