Beneficiaries Under 18 Years of Age
A revocable living trust is a practical financial planning tool for anyone who wants to safeguard their assets for their children. Unlike a last will and testament, a revocable living trust is the only legal document that avoids probate. Children from previous marriages and surviving spouses can receive fair treatment under the terms of a revocable living trust.
You may want to make funds available for food, clothing, education, transportation, entertainment, etc while not giving your children control over the assets until they are fiscally responsible. This allows parents to care for children who might otherwise squander an inheritance given to them in one lump sum under a will.
Another benefit of a revocable living trust is that is can provide for special needs children. Since the revocable living trust continues after the death or incapacity of the parents, other children will not have the financial burden of caring for their special needs sibling.
With a trust, when minors are the beneficiaries the trustee can manage and invest the trust funds, free of the costs and restrictions that arise when a court must appoint and supervise a guardian of the property until the beneficiary comes of age.
Also, with a revocable living trust, management of a beneficiary's assets can continue to whatever age you specify. With a will, the court will set up guardianships for beneficiaries under 18 years of age, resulting in additional costs and restrictions that may be imposed by the court. In addition, guardianships terminate when the beneficiary reaches 18 years of age. Obviously all children do not mature at the same rate and with your revocable living trust you can choose the guardian and stipulate how long the assets should be managed. For example, you can easily dictate that at age 21 the beneficiary be given 1/4 of the assets, another 1/4 at age 26 and the remaining 1/2 at age 30. There are infinite possibilities with a revocable living trust.
NUPP Legal's revocable living trust forms include guardianship clauses for minor beneficiaries so you can easily set up distribution for minors in any way you wish.