Many Tennessee parents worry about the future of their children. Even if they leave money to their offspring in a will, any number of events could happen that might deplete that inheritance, sometimes very quickly. This is why some parents create a trust for their children. In addition to avoiding probate, a trust may protect the inheritance of your children in multiple ways.
If you have children who are still minors, it is possible you might pass away before they become of legal age. According to Forbes, if you keep their inheritance in a trust, you can have a trustee take care of it until your children are grown. Once your children are of legal age, they can accept their inheritance.
You could also use a trust to protect your children from becoming destitute because of bad spending decisions or habits. If you have children who are adults but they have problems, such as addiction issues, or they just make poor financial decisions, you can place money in a trust for them but require them to spend the money on specific things, such as payments on a home, a college tuition, or a new vehicle.
With a trust, you might also protect your child in other ways. If your son or daughter works in a field of business that exposes your child to possible civil litigation, placing money in a trust may shield it from the reach of creditors. Also, if your child gets divorced, money you place in a trust for your child could be protected from a divorce settlement.
This information contained in this article is only for educational purposes. It is not to be interpreted as legal advice.