As a parent, guardian, or relative of a minor, you may wish to leave some financial security for them in your Will so that their future is ensured. Leaving an inheritance for a minor in your legal Will should be a carefully undertaken task. Sometimes even parents or guardians can misuse their children's funds for their own purposes or without regards to their child's feelings. To ensure that a minor's inheritance is protected until he becomes of age, finances should be placed in a testamentary trust fund. |
Testamentary trusts provides you with more control over the distribution and handling of the minor's funds. You choose how much money is received and when, regardless of the age of the inheritor. If you'd prefer to stretch out the finances over a longer period of time or provide a lump sum when the minor reaches the age of thirty instead of eighteen, it is completely up to your discretion.
Even with a testamentary trust, you will be required to have a trustee, which can be an individual, a bank, or a company. The trustee will be in charge of managing the account and distributions. It is also up to your judgment to include any additional guidelines for the trustee to follow, such as investments and how the funds may be used. For example, you may decide that the minor may only receive a certain amount to be used exclusively towards college tuition. It would be up to the trustee to enforce such rules. A personally appointed trustee also has the added benefit of no court supervision, saving unnecessary legal fees that can cut into the inheritance.
When estate planning, Louisiana has laws regarding the disbursement of minor's funds in case of an absence of a testamentary trust. If your legal Will lacks a trust, a tutor or undertutor will be selected by the court to control the minor's assets until he or she reaches eighteen. This is where things could get complicated. Any distributions, investments, or other actions pertaining to the minor's funds from a legal Will must be filtered through both the tutor and under tutor. A petition must be filed by the tutor that explains the situation or request, which then must be approved by the under tutor. Furthermore, the judge must also agree with the actions in order to move forward.
Tutors receive an annual payment which is provided through the interest accrued by the inheritance, not to be exceeded 10% of the revenues. A checking account to cover the minor's expenses can be set up with court approval. The distribution of funds will be at the tutor's discretion as the account will be in his or her name. If you're a resident of Louisiana, estate planning should include a thorough examination of trust fund options. To avoid unnecessary legal proceedings and costs, a testamentary trust can protect the funds that rightfully belong to a minor. If you want more control over a minor's inherited assets, choosing the proper trust fund is crucial.
In the event of your death, Louisiana legal wills protect the funds that rightfully belong to your minors. Melcher's Law Firm uses knowledge and the client's circumstances to determine the type of trust or will to recommend. http://melcherslawfirm.com/.
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