Deciding on a trust for your children can be difficult. To help you decide which is right for your family, we explain the differences between individual trusts and pot trusts below.
An individual trust allows you to leave a certain amount of money or property to one child. In the case of multiple children, you must create a separate trust for each child. Each trust stands as an individual document, meaning you can determine the property or funds in each trust; one child’s trust does not have to be the same as another’s.
You can also determine at what age the child can withdraw their total trust amount; until they reach this age, a trust manager you designate will handle the trust property.
A pot trust is created with 2 or more beneficiaries listed on the same trust. This gives your trust manager the opportunity to pull funds from the trust depending on the individual needs of the children. For example, if one of your children becomes severely ill, and your trust document allows it, your manager may choose to use more funds on that child than on another, healthy beneficiary.
In order for any of the children to receive their portion of funds, the youngest child must reach the designated age; the oldest child may not withdraw their portion until the youngest child is old enough.
Contact Our Pocatello Estate Planning Lawyers: (208) 623-8021.
If you are looking to establish a trust for your children, our legal team at May, Rammell & Wells can help you find a beneficial solution. We will work with you to create a binding, legal trust to secure the future of your children. We have more than 70 years of experience and provide personalized and focused legal attention.
Call our Pocatello estate planning attorneys today at . We are happy to answer your questions during a free consultation.