Monday, September 25, 2006

Day 217 - Trust Issues

Today's first time parenting tip - If you set up a trust, put a responsible adult in charge

If you're drawing up a will and setting up a trust to maek sure everything is taken care of if you and your spouse happen to pass away, you'll need to decide who controls the trust in your stead. Some people make give control to the child, some give it to someone else.

I'd recommend giving control to someone you trust, who is good with money, and will look out for the best interests of the child. If you passed away and your child was 3, there's no possible way they could make informed or even remotely smart decisions regarding money.

Better to have someone else manage your assets until your child or children are 18 or even older if you'd like. That way they're more able and better equipped to use the money. It'll also help the guardian of your children deal with large expenses or costs associated with raising your children without having to worry about running out because your fifteen year old bought an expensive car with the trust money.

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