Prince William County
Prince William County
Trusts are often associated with the ultra-rich, but in reality, they can be an essential tool for families across various income levels. Middle-class families should also consider setting up trusts for their children to ensure their financial security and proper use of assets.
Why Middle-Class Families Should Consider Trusts
It’s a common misconception that only the super-wealthy need to set up trusts for their children. However, even if you don’t have a vast fortune, your assets, combined with potential life insurance payouts, can add up to a considerable amount that your children may not be ready to manage. If your assets total over $150,000, it’s worth considering a trust to protect and guide your children’s financial future.
The Benefits of Setting Up a Trust
A trust provides you with the ability to dictate how your children use the money you leave behind. By setting up a trust with a Fairfax trust and estates lawyer, you can establish restrictions on how the funds are spent. For instance, you can designate the funds specifically for educational expenses, housing, or other day-to-day costs. This ensures that the money is used responsibly and in line with your wishes.
Additionally, trusts allow you to set age limits, ensuring that your children only gain access to the funds when they are mature enough to handle the responsibility. In some cases, you can also appoint a responsible adult to help guide your children in managing the trust, further safeguarding their financial future.
Protecting Your Children’s Assets
Trusts also offer an extra layer of protection against misuse by the adult responsible for managing the funds. In a custodial account, the person in charge can make questionable decisions or charge excessive fees for managing the account. With a trust, however, the designated trustee is held more accountable and must adhere to your stipulations.
Furthermore, if the trustee mismanages the funds, your children may have legal recourse since the trust is a binding legal agreement. This added security ensures that your children’s financial future remains protected.
Contact a Fairfax Trust and Estates Lawyer
To determine if a trust is the right choice for your family, we encourage you to contact our Fairfax trust and estates lawyers. We offer complimentary planning sessions where we’ll review your estate plan and discuss how a trust or other estate planning tools can best serve your family’s needs. To schedule your free consultation, call our office at 703-492-9955 and mention this blog post.
David Wilks has practiced law in Northern Virginia and
Prince William County for more than thirty years as
a tax lawyer by training and education. Read More