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Trusts can be both good and bad, depending on the beneficiary

People often misunderstand the power that a trust can have. When a person hopes to leave money to a person who isn't legally able to inherit property, they might set up a trust to help manage the money and make sure they receive the funds at an appropriate age. Sometimes people just say in their trusts that the money can be inherited by the person at the age of 25, or any other age over 18, and don't put any other restrictions on the money.

Some people are finding that they aren't able to handle all of the money at one time and aren't sure how to manage a large sum. Some even want to give away most of the wealth that they inherit at a young age. This can sometimes be difficult depending on how the trust is set up.

If a child is of an appropriate age, it might help to have a conversation with them about money and judge how responsible they might be to handle such wealth. Then a person can work with an experienced New Jersey estate planning attorney to develop a trust that follows a person's wishes.

Sometimes people find that they aren't sure how their loved one will handle the money. Trusts can be set up in cases like this to distribute some of them money over a certain period of time. These trusts can even allow paths for the beneficiary to give away the money if they decide they don't want or need it.

Source: The New York Times, "Among Young Inheritors, an Urge to Redistribute," Paul Sullivan, March 25, 2013

-Our law firm can help a person establish a trust for their children in New Jersey. Please visit our website to learn more.

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