In the event both parents pass away, most couples would leave the majority of their estate to their surviving children. A child cannot take an inheritance until they reach the age of majority (18 in Pennsylvania) under state law, and their guardian would hold the money for them until that time. However, most parents would prefer to avoid having an 18-year-old child inherit a large sum of money. Therefore the money can be directed to a trust for the benefit of the child. It can be used for their education, healthcare, and support until they reach a certain age(s) of the parents’ choosing. The trust for minors is a flexible design and its permutations are endless. Our firm recommends a number of smart design options to allow a family to select the trust that best fits their family and circumstances.
An additional feature of these trusts permits the transfer of assets into long-term trusts (or “Dynasty Trusts”) which permit the protecting of these assets from a divorcing spouse or from creditors.