Ten Serious Mistakes to Avoid in Estate Planning

6. Outright Bequests to

Immature Children.

Forgetting about the fact that minors cannot even receive property themselves, it is also a mistake in the large majority of cases for younger adults to come into substantial inheritances. Most 18 year olds are simply not ready to handle substantial sums of money. Instead, a will should provide that, until a child either reaches a certain age or achieves something like graduating college, the child’s money should be held in trust. The trust can provide for the child’s college education, as well as anything else that the trustee determines is appropriate. You can set the guidelines for when distributions can be made, and can even provide that your child will get portions of the trust principal at different ages. With very rare exceptions, this makes far more sense than simply putting a very large sum of money in the hands of a young person without any restriction.