Some Newport Beach parents think that they should start giving money away to their children right now, as they're getting older, to avoid different estate planning and tax consequences when they die. If you're one of these parents, you're definitely on to something. If your children are as good as you are -- or better -- at handling their finances, this could be a good idea.
However, a lot of parents may be concerned about the financial management skills of their kids. If you're in this category, you may want to consider using a trust to pass money over to your children. A trust provides the assets you give your children enormous protection. Potentially a trust will provide:
- Protection from creditors
- Protection from probate proceedings
- Protection from taxes
- Confidentiality protections (or protection from prying and curious eyes)
- Protection from the bad financial decisions of the beneficiaries who will receive the money and more