If you are concerned about passing on assets to your family members and their ability to manage this appropriately, a trust could be the perfect estate planning tool. For those young adults with money management issues or if you have minors who you want to eventually receive the assets, a trust can be a great way to name them as a beneficiary of a particular asset and protect the way in which it is passed on to them. A trust is a formal estate planning tool that should be drafted by an experienced estate planning lawyer.
A trust holds your assets on behalf of beneficiaries or a beneficiary and is a legal entity dictated by those documents made by the person who created it. If you go the right route to have this crafted by an estate planning attorney, those assets will go into the trust instead of directly to your heirs, which means they are only eligible to receive money based on the stipulations you have put inside the trust documents. The creation of a trust may vary in cost depending on the number of assets you wish to place inside and any other complexities.
Meeting with an estate planning lawyer can help you figure out whether a trust would complement your existing estate plan or whether another tool would be more appropriate. Having a consultation with a lawyer can get the ball rolling on these important conversations about planning ahead for your future.