Leaving financial assets to your heirs can be difficult. Maybe you do want them to inherit some of your wealth, but you’re just not sure that the time is right. Perhaps you’re doing estate planning when you still have heirs who are under 18, for example
If you passed away tomorrow, you would not yet want those individuals to inherit the sums of money that you are going to leave to them. You don’t expect this to happen, of course, but how can you prepare for that eventuality if it does come to pass? Is there a way to delay when that money is transferred to your heirs, without eliminating them from the will?
An age-based trust
Yes, you can delay when the distributions are made by putting the money in a trust and then setting different ages for distributions of those funds. You pick a trustee who ensures that your wishes are followed, and the money stays in the trust until the beneficiaries are authorized to get it.
For example, you could leave a third of the money to your heir when they turn 18. You could then leave another third of it to them when they turn 25, and they can get the final portion when they turn 35. You could also pick any other ages that you think are appropriate – these are merely examples. That said, people will often seek to leave money after the age of 25 because they believe the individual will make more prudent choices with those assets.
If you do want to use a trust, it’s very important to know exactly what legal steps to take to protect your family’s future interests.