Building a Legacy: Trust Options to Protect and Provide for Your Children

When it comes to planning for your children’s future, setting up trusts can be a smart way to protect them and make sure your wishes are followed. Trusts create a layer of security, giving you peace of mind that your assets will be used to support them in the right ways. While we are highlighting some popular trusts here, there are many options to fit unique needs and goals.

Here are a few specific trusts and how they can help:

• Special Needs Trust: Provides extra support for a child with special needs without risking their eligibility for important government benefits.
• Legacy Trust: Keeps your child’s inheritance safe in case of divorce, credit issues, and lawsuitss, so assets stay with your loved ones and in the family.
• Educational Trust: Ensures funds are set aside specifically for your child’s education, helping them pursue schooling without financial worries.
• Spendthrift Trust: Controls how much a beneficiary can access at a time, ideal if a child needs a bit of help managing their money.
• Generation-Skipping Trust: Allows assets to pass directly to grandchildren, skipping over the immediate next generation. This can help reduce estate taxes and protect family wealth for future generations.
• Charitable Remainder Trust: Provides income to your child during their lifetime, with the remaining assets going to a charity of your choice after they pass. This can be a good fit if philanthropy is a family value.
• Life Insurance Trust: Holds a life insurance policy outside of your taxable estate, ensuring the payout goes directly to your beneficiaries and can help provide for them without increasing estate taxes.
• IRA Inheritance Trust: Manages distributions from an inherited IRA, allowing beneficiaries to stretch out tax-deferred growth over time, which can be beneficial for younger or financially inexperienced children.

Each trust is designed with a specific purpose in mind and can be tailored to fit your family’s unique needs. If you are thinking about creating trusts for your children and want guidance on the best options, Wilson Law is here to help. We can walk you through which types of trusts may best support your goals and secure your children’s future. To get started, call us at 866-603-5976 or fill out our online contact form—we look forward to assisting you.