I am a Divorced Father with Three Teenage Children. Should I Create a Will or a Trust?

 Posted on August 08, 2023 in Estate Planning

Creating a comprehensive estate plan for divorced fathers with teenage children is crucial to secure their financial well-being. Individuals in this situation need to understand and explore the benefits and considerations of two common estate planning options: wills and trusts. Today, by examining your unique circumstances, we will explore your options to ensure you can make informed decisions that suit your family’s needs. Enlisting the services of a trained estate planning lawyer can help lessen the burden of figuring out on your own which decision you ought to make. By hiring a lawyer, you can feel confident that your estate planning goals can be achieved. 

Understanding the Purpose of Wills

A last will and testament is a legal record that details someone’s wishes regarding how they want their assets allocated once they die. It is an important document that allows an individual to name guardians for their minor children, designate beneficiaries, and specify how their assets should be distributed. In the case of a divorced father with three teenage children, a will may be a suitable option, especially if your estate is relatively simple and you prioritize simplicity and flexibility in your distribution plans. 

Exploring Trusts

A trust is an arrangement where a third party, referred to as a trustee, holds and manages assets for the benefit of your designated beneficiaries. Trusts provide greater control and privacy, as they can bypass probate courts and protect assets from potential beneficiaries’ creditors or legal disputes. Suppose you have complex or substantial assets or desire more control over the distribution and management of these assets. In that case, a trust may be the better option to ensure the long-term financial security of your teenage children. 

Considerations for Teenage Children

When deciding between a will and a trust, consider the age and maturity of your teenage children. A will may be sufficient if your children are near adulthood and can responsibly manage their inheritance. However, a trust provides added oversight and protection if they are still minors or lack financial literacy. Establishing a trust can ensure that a responsible trustee manages your assets until your children reach a specified age or milestone, allowing for more gradual distribution and ensuring their financial security.

Contact an L.A. County Estate Planning Attorney

For distinguished legal representation to reach your estate planning goals, contact the experienced Los Angeles estate planning lawyer with Law Office of David Schechet. Call 800-282-4731 for a free consultation. 

Source - https://www.investopedia.com/articles/personal-finance/051315/will-vs-trust-difference-between-two.asp