When your child reaches 18 years of age, they are lawfully considered to be an adult
Once your child reaches 18 years of age, they are lawfully thought about to be an adult. As an adult they might inherit large amounts of money, but that does not always imply that they should.
In the event that you do not have a will, if something were to take place to you, by law, your child could acquire all of the cash in your savings account and the cash from your life insurance policy – and they will receive all of it in one large swelling sum. When they acquire this money, they will have complete control over it and can spend it in any method they pick, even if they were to spend it in ways that you would not authorize of.
In lots of cases, moms and dads do not feel it is a good idea for their 18-year-old child to have total control over numerous countless dollars. If you can remember when you were young, and a few of the manner ins which you might have invested a large sum of money, you may comprehend why this might not be the very best method for your child to receive their inheritance.
The decision of how to leave your child’s inheritance to them is a personal one and is typically based on that child’s individual personality. You must think through this choice really thoroughly. Will she or he spend the cash on their education and the important things they need in life, or will they blow it on elegant cars and holidays to Mexico?
If you do not feel that your child would be responsible adequate to have control over large amounts of money when you are still around, you likely would not desire to hand it to them if something should take place to you while they are still young. You can leave instructions in your will of how you would like the cash spent, it is important to remember that they will still have control of that cash and can spend it in any way that they pick.
Fortunately there is a way that you can have some control over the cash that you leave your child. If you leave that cash to them through a trust, the trustee can guarantee that the cash is invested in an accountable method, and your child will not have to stress over dealing with the temptation to blow their inheritance on things that will do them no great later in life.