As the parent of three children, it is your goal to make your passing as easy as possible on them. You know that their different ages and experiences could affect them when you pass on, which is why you want to make sure you control the situation and give them guidance even after your death.
One of the ways you can make providing an inheritance to your children easier is by setting up trusts. Individual trusts with each child named as a beneficiary limits the risk of will contests or conflicts. They will know that what you put into the trust is theirs and that they can receive it once they meet the requirements of the trust.
Here’s an example. If your oldest child spends money quickly, you may want to put the money into a trust and limit their payouts. For instance, if there is $100,000 in the trust, you could limit the monthly payout to $2,000 or $5,000. This would make it harder for them to spend everything all at once.
If your second child is cautious with money, you might give them a trust that pays out when they get married or when they move into a new home.
For a third child who may be the youngest and need the most support, it may be a good idea to include a trust with levels of triggering events for payouts. For example, you may pay out $10,000 a year each year they go to college or pay a portion of the trust’s assets to them every 10 years.
When you set up inheritances in individualized trusts, your children will know what they can expect and what they need to do to obtain the assets that you’ve left behind. Your attorney can help you set them up specifically with each child in mind.