In the event that someone you have selected to serve as your child’s guardian may not be an appropriate money manager, you may wish to establish a trust to manage the child’s assets.
Even in the situation in which a guardian may not be a poor money manager, you may wish to establish a trust anyways. This should be considered particularly for anyone who has a special needs child or significant assets to leave behind. A trust can accomplish several different important roles, including:
• Managing a spendthrift child’s problems
• Distributing property beyond age 18, if this is something you wish to do
• Managing the property for the child such as certificate of deposit rollovers and stocks
The trustee that you choose may be a corporate institution or an individual. The guardian will be responsible for receiving reports from the trustees on minimum a quarterly basis and many will also be involved in preparing and submitting the child’s income tax returns.
Do you have more questions about the estate planning process and the top strategies for protecting your beneficiaries and your property? Schedule a consultation with a New Jersey estate planning lawyer today.