Family units are unique – Gone are the days of Mom, Dad, and 2.5 children. Today families are as unique as the individuals that create them. Blended families, multiple marriages, children/grandchildren from prior marriages, and special needs children, in-laws you like (or not so much) are all common features of today’s families. Some family members are financially responsible while others will never be. Perhaps one child is very capable but another has a dependency/addiction or creditor issues.
What is best for YOUR family?
Trusts allow you to help your family in the unique way they may need it. Many people think you need to be “rich” to have a trust. Wrong! There are many reasons to use trusts.
You have $600,000 in your 401(k) and your 2 children are the beneficiaries. Are your 20 and 22-year-old children mature enough to handle $300,000 each?
Assume you have 3 children. Easy – each child gets 1/3 and lives happily ever after, right? Not so fast. Will the assets benefit your grandchildren? Maybe and maybe not.
- Child 1 – married to someone you like and has 2 children together
- Child 2 – married to a someone with 2 children from a prior relationship, and 1 child together
- Child 3 – single, party animal, spendthrift
When Child 1 passes, the “good” in-law may get 1/3 but what if he remarries? Your assets may end up in an unrelated family – all for a lack of planning.
When Child 2 passes, do you want the 2 unrelated grandchildren (non-blood relatives) to receive your assets? They very well may unless you plan accordingly.
When Child 3 passes, do you prefer those funds to go to your grandchildren or to Child 3’s girlfriend, dog or worse yet creditors for the fancy car and boat that are now in disrepair?
Trusts ensure your hard-earned assets are used for your intended purpose.
They provide valuable creditor protection in the litigious world in which we live. At The Trust Company, we have worked with many families, and over many generations, to design and implement a plan for unique families. We would love to help your family too!