Helps Manage Distribution Planning Sample Clauses

Helps Manage Distribution Planning. A simple Last Will and Testament (“Will”) can be limiting in terms of how assets are transferred to heirs. Some planning issues to consider are: whether heirs are to receive equal or unequal shares; at what age heirs should receive their shares, as well as whether they should receive assets all at once or in installments; what to do when an heir is disabled or has reckless spending habits; and how to assure that heirs will use their respective shares toward specific ends, such as to pay for a college education. A Trust offers more control over how assets will transfer to heirs than either a Will or beneficiary designation. Having a Trust to help manage how assets are transferred is extremely beneficial, especially when dealing with minor children. State law entitles the minor children to obtain the funds outright at 18 (age of majority); whereas in a Trust, you can build your own parameters and guidelines pertaining to the age brackets and times at which the children are entitled to the funds. For instance, you could indicate that your children receive half of the funds in the Trust at age 23 and the remainder at age 30. You could also indicate that your children are not entitled to the funds until they are finished with college, and whatever age that is becomes the time at which they are entitled to the remaining funds. Under the guidance of an attorney, a Trust enables you to basically configure any distribution guidelines for your children that are comfortable for you.