Do You Need A Children’s Trust?

Metro®Boston, Publication Date: February 8, 2012
By: George Warshaw

Is there anything more important than your children’s upbringing?  What would they do if you died?

Many people add a few scant words in their wills to provide for their children; others create a so-called subtrust as part of a 60-90 page master estate planning trust that requires a flow chart and diagrams to figure out.

Let me give you another idea.

Why not create a separate trust document devoted solely to your children, written in plain English, that they and you can read and understand. Call it a “Children’s Trust”.  Your will, life insurance or master estate planning trust funds the trust and all or part of your children’s upbringing.

You can fund their education, provide for medical care and reward personal accomplishments. You can provide incentives that broaden their personal growth and experiences. Here’s an example:

Let’s say you want your child to experience first-hand the heartbreak of a Katrina-like disaster and helping people in need. In your Children’s Trust, you offer to pay your child a handsome salary for spending a summer working for Habitat for Humanity or the like.

So consider what’s important to you and perhaps your child will “ace” your final exam!

Next week:  Protecting your Pets.

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© 2012 George Warshaw.  George Warshaw is a real estate and estate planning attorney in Massachusetts. He represents buyers and sellers of homes and condos in Massachusetts, and prepares wills, trusts for individuals and families. George welcomes new clients and questions at metro@warshawlaw.com.

Legal Advice: Laws, and court decisions interpreting them, change frequently and this article is not updated as laws change. The content and information contained in this article is neither intended as legal advice nor shall establish an attorney-client relationship.

Tags: Estate Planning Attorney, Wills and Trusts