Quote:
Originally Posted by lewdog
I understand. I do appreciate your thoughts on probate though. Everyone seems to make it a big deal and says that if you have any kind of assets and kids, you should have a Trust.
My biggest reason for having a Trust would be to delineate monetary assets such as investments, so say my 12 year old son wasn't placed with a lump sum of cash and instead you could delineate money to him over decades if needed.
What happens in that scenario where both parents die and let's say have a sum of $250k in investment accounts? They only have one child, who let's say is 10 years old. If they have no trust does that minor really become the sole beneficiary of that lump sum?
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Yes, but what will happen in the real world is a guardian would be appointed because nobody is going ot hand a kid $250K in cash. He doesn't have legal capacity to even enter into a contract for God's sake.
So hopefully some family member who isn't in it to steal the money for himself/herself steps up, otherwise a bunch of family members potentially fight over the appointment, etc. But if you set up your estate plan that can be in what is called a pourover trust, where your assets (other than specific bequests and the like) are poured over into a trust that exists on paper but has nothing and does nothing until/unless you die, at which point it goes into the trust. The trustee is whoever you appointed etc. etc.
Different trusts for different purposes. But yes, if you have underage kids, at least a pourover trust is a damn good idea.