If you’re creating your Maryland estate plan, a large part of this process will likely be arranging an inheritance for your children. It may be a good idea to consult a professional on this to be sure that no one will be able to contest your estate after you pass away.
Choosing a payout
Usually, the funds in trusts are available for the recipients once they turn a certain age. However, some financial experts argue that children should not start receiving inheritance funds until they are out of their 20s since 25 may be too young for some individuals to properly manage their money.
You may also want to schedule the payouts so that once your pass away your children will receive funds from your estate every few years. If you plan to leave your children a lump sum of money, it may be a good idea to ensure that your heirs can not receive the money without adhering to the rules and conditions you’ve established.
Find the right trustee
The trustee will be in charge of managing the funds in the estate, so this person must be reliable and financially savvy. A family member or close friend who is familiar with tax laws and investments or a relative who is a business owner would likely be an ideal trustee. The right trustee will also be able to determine whether or not financial requests concerning your estate are beneficial.
You also have the option of placing custodial accounts into trusts. This gives your child the option of signing off on the account and receiving the money once they become adults.