video-clip
- Consumer
Why Trusts Should Not Pay Out at Specified Ages
Speakers: Jonathan G. Blattmachr and Martin M. Shenkman
The most common historic way to plan trusts is to have them pay out at specified ages to children or other heirs. For example, when a child attains age 30 give her ½ of the trust and at age 35 the remaining ½ (i.e., the balance of the trust). Why is this common approach to trusts dangerous and almost always inadvisable? Why does something so commonly done destroy tax, asset protection, divorce protection and other critical benefits? What should be done instead?
Handouts