Giving Gifts to Children
You can’t leave money or property to minors outright, so giving gifts to young children takes preparation and thought. Here are some tips:
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- Set up a Living Trust. A living trust can save the time and money involved in the probate process. After your death, your appointed trustee will manage the assets and distribute the money to the child in accordance with your directions.
- Pick a Trustee. A bank or corporate trustee is ideal because they are regulated and will manage the money responsibly. If there’s not enough money for a professional, choose a relative or friend who has experience managing money.
- Pick an Age. Once your beneficiary turns 18, he or she can legally take control of his or her inheritance. However, you may wish to designate a later age for him or her to get control over the trust assets.
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See Alexia Elejalde-Ruiz, Bequests to the Young Hardly Child’s Play, Placing a Packed Piggybank on a High Shelf Simply Won’t Do, Chicago Tribune, Sept. 23, 2010.
Special thanks to Jim Hillhouse (WealthCounsel) for bringing this to my attention.
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