Legal Blog
The Weekly Scenario: Should I set up a separate trust for each of my minor children?
Question: Should I set up a separate trust for each of my minor children?
Answer: Many clients set up individual trusts for their adult children to protect them from others (and themselves).
For minor children, a useful tool is something called a ‘common trust.’ A common trust is a trust that benefits all the minor children together as dictated by their needs. Each child is treated fairly, but not necessarily equal.
In other words, the trustee does not have to give a certain amount to each child (to keep things equal). The idea is to mirror what a parent would be able to spend on thier minor children (e.g., one child needs braces, another needs a tuition payment and another is going to camp) based on their individual needs.
Comment: Most common trusts are designed to terminate when the youngest child reaches a certain age or completes college. At such time, the trust funds will be divided among the children and can be distributed either outright or in trust.
As always, if you have any questions or would like to learn more, please contact Steve Shane at sshane@offitkurman.com or .
ABOUT STEVE SHANE
Steve Shane provides strategic counseling to clients in need of estate administration, charitable giving and business continuity planning while minimizing estate, gift, and generation-skipping transfer tax exposure. He offers legal guidance to clients on asset protection and the proper disposition of assets in accordance with the client’s objectives, while employing tax planning techniques such as the use of irrevocable trusts, life insurance planning, lifetime gifts and charitable trust. He is also experienced with drafting documents for business planning, the incorporation and application for exemption for Private Foundations and the administration of decedents’ estates.
ABOUT OFFIT KURMAN
Offit Kurman is one of the fastest-growing full-service law firms in the United States. With over 200 attorneys in 14 offices that stretch from New York to North Carolina, we represent privately-held companies and families of wealth throughout their business life cycles. Our mission is to provide our clients with “The Better Way” to grow their organizations, protect their businesses’ and families’ wealth, and resolve their most challenging legal conflicts. In addition to our quality of attorneys and breadth of legal services, Offit Kurman is distinguished by our unique operational structure, which encourages collaboration rather than internal competition. The same approach that makes our firm attractive to legal practitioners gives clients unlimited access to experienced counsel in every area of the law. Trust, Knowledge, Confidence—in a partner, that’s perfect.
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