Three Big Threats To Your Children Over 18 –
And How To Protect Them
By Phil Rarick, Weston Estate Planning Attorney
You have done it. You have guided (or you have survived) your children’s teen years. They are now over 18. They are now “sui juris” in the eyes of the law: this means they are fully independent to make their own legal choices. And you would like to help them to continue to make good choices. Here are three threats most parents are concerned about – especially when it comes to passing on hard-earned savings to your children in event of death.
Threat #1: “My kids will blow it.” How many young persons in their 20’s are good money managers? Would they have the discipline to use it for college or graduate education? Or would they put the money in a hot, new car and lavish life style?
Threat #2: Creditors or College Debt will eat it up.
Threat #3: Your adult child gets married and a new spouse will grab it.
How to Protect Your Children After 18
The answer is a living trust with a Protective Safe Harbor Trust for each child. Think of your living trust as a chest of drawers. A Safe Harbor Trust is simply another drawer in this chest. Each child can have a separate drawer or trust. The Safe Harbor Trust would make sure your monies are managed at your death by a person you trust who must follow your instructions. The trustee’s job would be to make sure the money is used in a wise and prudent way for your child’s (1) Education; (2) Health; (3) Best interests: such as a car (maybe a Honda) if needed to get to work while in college.
Take Away Point
The Safe Harbor Trust can help your child from blowing these monies, from a creditor trying to attack it, or from a new spouse trying to get it. You work hard for your savings; you want to protect every dime. For these reasons, every parent with children should consider a Safe Harbor Trust.
For more information, contact Phil Rarick, a Weston estate planning attorney, at (305) 556-5209
The information on this blog is of a general nature and is not intended to answer any individual’s legal questions. Do not rely on information presented herein to address your individual legal concerns. If you have a legal question about your individual facts and circumstances, you should consult an experienced Weston estate planning attorney. Your receipt of information from this website or blog does not create an attorney-client relationship and the legal privileges inherent therein.