Working hard all your life to accumulate assets is a monumental task that you don’t want to go to waste. However, passing on inheritance in Maryland can be challenging. One of the elements you may worry about is if your child someday gets divorced. If this occurs, it could mean that a significant portion of the assets you leave behind will go to an ex-spouse. Doing all you can to protect your child’s inheritance may require the use of a trust when planning your estate strategy.
Using a trust can be highly beneficial
If you want to ensure that your child has protection when they inherit your assets, utilizing a trust may be your best option. Instead of distributing all of your assets to them via a will, you can set up a trust to protect their inheritance. If they ever get divorced, it will be difficult for their ex-spouse to receive the funds sitting in the trust.
Are there any special requirements in setting up a trust?
Setting up a trust can be more complex than creating a will. When a trust is set up, there is usually more administrative work to complete. In addition, a company or person will need to be named as a trustee. Their job is to oversee the funds existing in the trust.
When might you want to set up a trust for your child’s inheritance?
Leaving your assets to a minor is not usually the best option as a person younger than 18 may not have the maturity to handle a large sum of money correctly and efficiently. Knowing that you have a newly married child or one involved in a marriage that is not going well is also a good reason to set up a trust to handle your inheritance.
If you’re in a position of leaving a significant number of assets to your heirs, you want to protect those assets. Utilizing a trust may be the best way to ensure the inheritance stays with them and doesn’t get transferred to another party.