If you have children, you may want to make sure that they are properly cared for, financially and otherwise, if you pass away. Many parents want to set aside money for their child to inherit but are concerned that the child will receive this large sum of money without restrictions when they are not yet able to fully manage their affairs.
A testamentary trust is one way for Ohio parents to ensure that their children only receive their inheritance when they are old enough and mature enough to manage their finances responsibly.
Creating a testamentary trust
Children under the age of 18 generally cannot inherit their parents’ estate directly. Therefore, parents may put the assets they want to give to their child into a testamentary trust, which will generally be included in the parent’s last will in testament. The parent will then appoint a trustee to manage the assets within the trust until the child is old enough to manage their own assets.
A parent can make changes to their trust during their lifetime by updating their will. When the parent passes away, the testamentary trust will become irrevocable. The trustee will then make sure the trust assets are given to the child when they reach the age designated by the parent.
Parents often work hard for years to make sure they can give their kids the financial support they need. Ohio parents have several estate planning tools, including testamentary trusts, at their disposal to ensure that their kids will receive the money and assets that have been set aside for them.