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I am also actively planning our estate to protect our twenty-somethings in case we are both simultaneously hit by a bus and they find themselves inheriting large sums much too early in life.
Why don't you trust your kids ?

You are putting words in my mouth. Very incorrect words.

If we were hit by a truck today, they would each receive millions of dollars. I think this is a disservice to a 22 year old who is just about to graduate college. As it stands, they would immediately receive a significant chunk via IRA, over $1MM each, with the remainder to follow at 35. They will also have the right to keep the funds in the trust, which they are immediate co-trustees of and free to invest the funds themselves, getting the customary interest and dividends annually. Additionally there are the customary provisions in the trust for health, education, maintenance and support, which includes the opportunity to get funds to start their own business or buy a home, if the co-trustee agrees. We have also discussed it with both, and they understand and agree with our reasoning.

In our case, 25 year old Eldest is executor of our estate and successor trustee of our family trust, responsible for overseeing the division into two individual trusts at which point they are their own trustee with a co-trustee they must find, such as a CPA. Both boys also have medical POA to make decisions for us if we can not make decisions for each other or ourselves.

This will all be a moot point in 13 years when Youngest turns 35. We very much expect to be alive at that time, but one does not plan to be taken out in a crash with a semi tractor trailer on the interstate. Instead we understand the possibility and mitigate the fallout. Assuming we manage to live for the next 30-40 years, there may also be much less to inherit.

Trusts can be used as an asset management tool that does not have to be eternal management from the grave. Money is good, but too much money, too soon and in a time of bereavement, can be detrimental.

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