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You sure want to leave your kids some bequests as a parent. Doing so can serve as one of the main inspirations for your life’s work.
The wealth you leave behind runs a risk, it can go to waste, or your children can lose it. It may result from life events like divorce, debt, sickness, and unfortunate accidents. A sudden inheritance may be worse for your children than good.
When you transfer estates to your children through a will, there are chances it will meet a glitch. As a result, the best way to transfer the inheritance to your children is through a living trust made with the assistance of a probate lawyer.
In this blog post, we dive deep into how to protect your children with a living trust.
What is a Living Trust?
As a parent, you know that your primary goal is ensuring your child’s safety. Parents approach this goal daily in many ways. For example, you check car seats, install child locks on cabinet doors, etc.
These little gestures are intended to protect your young child from any potential harm.
The assets you bequeath to your children also need protection. Hence you should protect them with a living trust since you cannot exactly assess when to leave them.
A living trust enables you to leave your possessions to your children or survivors. Not only that, but it also protects your children from any legal claim over the properties.
Such estate planning needs qualified probate lawyers or wills lawyers so that your heirs don’t incur hefty legal bills. Legal professionals can navigate you through state-specific laws to make sure your wishes are upheld even after your lifetime.
For example, the Orange County estate law allows the transfer of a title to a successor trustee on an estate. You can also put other real estate assets in trust and have them shared after your passing.
If you leave your estate inheritance in a will, it takes a long process to retrieve it. According to probate attorneys in Orange County, a living trust covers you from probate and the long process.
Some important points to note about a living trust are:
- It has two major types: revocable and irrevocable.
- Third parties cannot challenge it like in the case of a will. As a result, the trust reaches your children.
- You can determine the payment if the trust is at a certain age for the child, even in your absence.
In general, a living trust protects your estate plan from legal claims.
How to Protect Your Children With a Living Trust?
Below are a few ways to protect your heirs through a living trust.
Avoid Court Challenges
This is usually the primary reason for anyone setting up a living trust for their children. Any possessions you have gathered while alive will be a part of your estate when you are no more. Along with your assets, if you don’t have an estate plan in place, your children start long court processes to claim them.
Your will states the distribution of your estate to your heirs. But your estate must go through the probate procedure before transferring assets. During this, your will becomes a piece of public information.
Also, if others challenge the will, they may take it away from your intended recipient. This probate procedure can be expensive and time-consuming for your children.
Your children will need money and help to go through this process to claim what already belongs to them. But a fully-funded living trust can shine in this situation. A living trust allows you to leave money and property to your heirs.
It does so without having them go through the expense of going to court. Instead of a probate court, choose your successor trustee to receive the assets.
You don’t have to transfer title to the trust property if you change the trustee’s status. The living trust defines the position of the Trustee as a legal status. So whoever holds that post is the owner of the trust property.
As a result, a Successor Trustee will not probate in your absence. The reason is that legal ownership of your assets will continue to be in the Trustee’s name. The Successor Trustee will distribute your assets outside the probate process as specified.
Seek Help From a Trust Lawyer
Most trust lawyers will tell you to put money in a revocable living trust. When leaving an inheritance to your children, it is the right move to make.
The will lawyers would tell you to give your loved ones the trust’s assets at particular ages. For example, it can be one-third at 18, half of the remaining at 30, and the rest at 35. Now check your trust to determine if it performs this or a comparable action.
Wills put everything you’ve fought so hard to leave behind in danger because others can contest a will. Not only that will also leave your assets at the mercy of your kids who may not be fully mature to handle the situation at that point in time.
So, ensure that you state that the asset should get to the child upon request after reaching a certain age.
Avoid Windfall Inheritance
Until they reach adulthood, minors will not be able to access or inherit any assets or property. Thus, a living trust is a fantastic means to ensure that your young ones get good care before they turn 18.
Without a living trust by a trust lawyer, your kids may receive a windfall when they are still young. So, a living trust enables you to say when, how much, and for what purpose assets go to your children, regardless of age.
Protect against Conservatorship
A living trust can shield your family from conservatorship if you become disabled. Others can manage a disabled person’s affairs on their behalf through a conservator.
Using a living trust allows the children to access the funds since they do not have to worry about going to court. Also, a living trust gives the children one less issue to deal with when someone gets sick.
After working hard all your life to earn your assets, you want nothing but to leave them in peace for your future generations. A living trust is a sure way to protect your children against any predators and the legal complexities at probate court.
It can make sure that your assets reach your children at the right time without legal issues.
Even the most prudent kids should have some protection against taxation and creditors. A complete living trust can achieve these, too.
A special needs planning lawyer can assist you in deciding how to leave assets to your children in a way that will meet your goals.