If you suspect that your child lacks the ability to make sound financial decisions, one solution is to leave their inheritance in a trust and appoint a trustee to make financial decisions on their behalf.
A trust allows you to appoint a trusted individual (called a trustee) to manage your child’s inheritance. The trustee can be anyone from a family member or friend to a hired professional trustee, such as a bank. The trustee has the authority and responsibility to manage the trust assets and make distributions in accordance with criteria selected by you.
A trust can be established during your lifetime (a living trust) or after your death in accordance with the terms of your will (a testamentary trust). Both forms allow you to control how the money is distributed. The distributions can be contingent upon need, or alternatively, can be calendar based installments or lump sums given at pre-selected ages. Your estate attorney can help structure a trust personalized for your child based on their particular needs.