Young Families
A young couple may have a retirement
account, some home equity and a life insurance policy but they may not have any
assets or investments. One would think they do not really need estate
planning, and that they could just get by with a simple will form to fill out
that they could print online but the truth is that a young couple could greatly
benefit from a living trust without costing them an arm and a leg. A young couple may have a retirement account,
some home equity and a life insurance policy but they may not have any assets
or investments.
One would think they do not really need estate planning, and that they could just get by with a simple will form to fill out that they could print online but the truth is that a young couple could greatly benefit from a living trust without costing them an arm and a leg. Hypothetically, let us say that John and Mary Smith were a young couple in their 30s and died in a car accident and they named each other as beneficiaries for their life insurance and their son as the secondary beneficiary. In this scenario, the insurance company would not pay their son directly. Someone would have to go to court to set up a guardianship over the property.
If the John and Mary did not have a living trust, a court would most likely be appointing a stranger as a guardian over the child’s insurance funds. Every time the child would need funds for schooling, the child would need to get permission from this stranger which could bring tremendous amount of cost and delay. In addition, the funds would be released to the child as soon as he or she turns 18 in which at that age maturity still lacks.
With a trust, John and Mary can delegate who would specifically be the guardian which would bypass court costs and delays. Also, John and Mary could have the funds distributed in increments throughout the child’s live to prevent enormous amounts of spending at an early age. In addition, John and Mary could delegate exactly where the money can only be spent such as wedding, education, vehicles etc.
For a young couple, the benefits of having a trust are profound.
One would think they do not really need estate planning, and that they could just get by with a simple will form to fill out that they could print online but the truth is that a young couple could greatly benefit from a living trust without costing them an arm and a leg. Hypothetically, let us say that John and Mary Smith were a young couple in their 30s and died in a car accident and they named each other as beneficiaries for their life insurance and their son as the secondary beneficiary. In this scenario, the insurance company would not pay their son directly. Someone would have to go to court to set up a guardianship over the property.
If the John and Mary did not have a living trust, a court would most likely be appointing a stranger as a guardian over the child’s insurance funds. Every time the child would need funds for schooling, the child would need to get permission from this stranger which could bring tremendous amount of cost and delay. In addition, the funds would be released to the child as soon as he or she turns 18 in which at that age maturity still lacks.
With a trust, John and Mary can delegate who would specifically be the guardian which would bypass court costs and delays. Also, John and Mary could have the funds distributed in increments throughout the child’s live to prevent enormous amounts of spending at an early age. In addition, John and Mary could delegate exactly where the money can only be spent such as wedding, education, vehicles etc.
For a young couple, the benefits of having a trust are profound.
David Taylor
621 G Street, SE
Washington, D.C. 20003
202.546.1536
621 G Street, SE
Washington, D.C. 20003
202.546.1536
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