Last time we talked about the need to protect your kids and the importance of naming guardians. Today I would like to discuss the importance of protecting your assets for your kids.
Leaving your assets to your kids while they are minors is a tragedy. Kids will take under UGMA, which means – assets will be invested in blocked accounts, no access to the assets without prior court approval, and they get it all when they turn 18. Strike one, two and three.
Better plan is leave your assets in trust for your kids. Here are the advantages:
- Independent trustee who can work with the named guardians of your kids
- Assets can be invested in a proper manner
- Distributions do not need court approval
- Assets can be held in the trust until you decide when, if ever, you kids should get them
- Very good asset protection.
Not only is this valuable planning for minor children, but it is equally valuable to adult children. Rather than giving your assets to your kids, why not keep it in trust for them for the rest of their lives? Just let them take over control of the trust at an age when you feel they are old enough and wise enough to handle the wealth in a responsible manner.
If you would like to discuss these ideas in more detail, please contact us. This is Jamie Kalicki of Kalicki Law Offices. Remember, when it comes to protecting you, your money and your wealth, its Kalicki Law Offices.