New Haven Trust and Estates Lawyer on How to Use Trusts to Protect Your Children's Future
- By Franklin Drazen
- Posted May 16, 2023
Trusts are often associated with the ultra-rich, but 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. Our top New Haven, CT trust and estate lawyers provide trust administration services.
Why Middle-Class Families Should Consider Trusts
It's a common misconception that only the super-wealthy must set up trusts for their children. However, even if you don't have a vast fortune, your assets, and 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 allows you to dictate how your children use the money you leave behind. By setting up a trust with a New Haven 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 per 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. Sometimes, you can appoint a responsible adult to help guide your children in managing the trust, further safeguarding their financial future. We provide will and trust setup and planning services in New Haven, CT, and beyond.
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. However, the designated trustee is held more accountable with a trust 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 New Haven Trust and Estates Lawyer
We encourage you to contact our New Haven trust and estates lawyers to determine if a trust suits your family. 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.
Contact our will and trust planning lawyers in New Haven and Hartford, Connecticut. at 203-877-7511 to schedule a consultation. Mention this blog post.