Helpful Rules to Set for Your Trust Fund Kid

11:17 pm Asset Protection, Estate Planning

raining money 150x150 Helpful Rules to Set for Your Trust Fund KidAmerica’s baby boomers are the most entrepreneurial generation in history, with great stores of wealth that many are just now trying to decide on how to leave to their children.  An article at suggests five trust fund rules to help the next generation:

Pass the buck before taxes go up.  Take advantage of the current $5 million individual/$10 million couple exemption by making gifts to irrevocable trusts.

Build in flexibility.  Consider staggering the distribution, with some monies given at 25, 30 and so on, which allows children to mature into their money.

Add incentives.  Some people build incentives into trusts so that children are encouraged to finish college, start a business or run a charitable enterprise.

Take advantage of the recession.  If you have real estate holdings that are currently artificially low, consider gifting those now instead of later, when the tax laws may be different.

Consider Warren Buffett’s advice.  Buffett, whose children each received $1 billion to do nonprofit work but only $90,000 in stock for personal use, said he believes you should give children “enough to do anything, but not enough to do nothing.”

Let our Costa Mesa law offices help you get started by contacting us today.

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