Since Montana law stipulates that minors receive their inheritance when they reach age 18, what can I do if I don’t think my children will be ready to manage their inheritance at that age?
You may believe your 18-year-old is bright but conclude that he or she is incapable of managing $100,000 or $200,000 in assets. Rather than leaving the assets directly to the children and nominating a conservator to manage them until the children reach age 18, you can have the assets left in a “family” trust for the children’s benefit. In your will you indicate which assets pass directly to the trust. This is referred to as a testamentary trust. The trust document states how you wish the money to be spent, who should be the trustee, and when the trust should terminate so assets pass to the children. The trustee has the responsibility of following your directions for health, education and support as outlined in the trust agreement. The trustee writes out the checks for the children’s living expenses, education and other costs. You can provide for trustee compensation if you feel the duties are fairly extensive. (For more information on Trusts, Click Here) An alternative to a testamentar
Related Questions
- Since Montana law stipulates that minors receive their inheritance when they reach age 18, what can I do if I don’t think my children will be ready to manage their inheritance at that age?
- Once a Uniform Transfer to Minors account is established, what age does the minor need to reach before the assets can be transferred into their name?
- Who are the parties to a trust?
