MISTAKE #4 — Not considering how you want your money distributed to your kids. If you’ve made this mistake, the money you are leaving to your kids may be at risk. You’ve worked hard for your money, take one more step and make sure it goes to each child in a way that helps become their best selves.
If you have a simple Will or nothing at all, the Court will have control of money that goes to children under the age of 18. The money will be put in a collective trust fund (Minors’ Intermingled Trust Fund) or someone you wouldn’t choose may handle it for your kids. Your guardians will have to request money from the trust fund to be reimbursed for expenses for raising your children.
And then, it’s possible that they may receive what is left it at 18 with no supervision. How many 18 year olds do you know who are good with money?
Instead, you can choose who you want to manage your money for the benefit of your children and even protect your money from your children’s future divorces or lawsuits. You can do this with either a Will that contains language creating a trust when you die or a trust that you create now. If you value privacy and confidentiality, creating a trust now may be preferable because wills are public documents.
Make sure you get the assets you are leaving behind for your kids handled.