Trusts for minors
This is probably an obvious one for most people. You may already have it outlined in your will that in the event that both parents die at the same time, or when the surviving parent dies, a portion of your estate shall be held in trust for minor children or grandchildren until they reach a certain age. In the meantime, the trustee can still make use of the capital for specific needs of the children. Many people then arrange to have the money disbursed over various time periods as the children mature. For example, one-third at age l9, one-third at age 25 and one-third at age 30.
The selection of a trustee is a critically important part of the process. Many people use a trust company as the trustee or co-trustee. Regardless, due to the legal and tax implications of setting up a trust agreement correctly, you want to obtain expert advice from a tax accountant, and from a lawyer who deals in wills and estate matters.
