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Trusts can help manage assets for minor children

When making important decisions in life, many people can make similar decisions but for vastly different reasons. For example, some Arkansas residents may choose to create trusts as part of their estate plans because they want to protect their assets. On the other hand, others may have minor children who could not manage their inheritances in the event of their parents' passing, and a trust could help. Fortunately, this planning tool is versatile enough to fit most people's needs.

Creating a trust for the inheritance of a minor can be immensely useful. Because a minor cannot directly inherit assets, the parents could name a trust as the beneficiary of the assets. If they should meet an untimely demise, the assets would pass into the trust, and the trustee that the parents chose would manage the assets. This can be helpful because it allows parents to choose a trustworthy person to manage the assets until the child comes of age rather than having the court appoint a person.

When setting up a trust, it is important to have certain information ahead of time. Individuals can determine who they want to act as the trustee and gather important documents that could be useful during the creation process, such as financial statements, property ownership records, life insurance information and more. A family tree may also be useful when it comes to discussing heirs and beneficiaries.

If the idea of creating trusts seems overwhelming, Arkansas residents may want to remember that they do not have to try to create this important document on their own. Estate planning attorneys are available who can provide useful insight into the many uses and benefits of this planning tool. They can also help ensure that the trust is created properly.

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