16 Oct Should we get a trust to protect our kids’ inheritance?

Q. We have approximately $1.5 million in cash and investments, mostly in Certificates of Deposit (CDs). Our mortgage is paid and we have no debt. We have three adult children. Should we put our assets into a trust to better protect them for the future?
— Planning

A. We’re glad to hear you’ve been able to save and are free of debt.

You have several options for your children’s future inheritances.

For starters, you can create lifetime trusts or trusts in your wills for the benefit of the surviving spouse during the spouse’s lifetime, said Shirley Whitenack, an estate planning attorney with Schenck, Price, Smith & King in Florham Park.

Then, you can have the remainder of the assets pass in trusts for each of your children until they reach a certain age or ages, she said.

Alternatively, you can have such trusts continue for the benefit of their grandchildren, she said.

“The children’s trusts can provide that the assets and income can be used for the health, maintenance, education and support of the child,” she said. “The couple should choose a trustee or co-trustee will be responsible for investing the assets, filing tax returns and paying taxes, if any, and distributing the assets in accordance with the terms of the trust.”

It sounds like it’s time for you to meet with an estate planning attorney so you can decide the best action based on your circumstances and goals.

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This story was originally published on Oct. 16, 2019.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.