Use a living trust when you have children under the age of 25

Attorney Tom Olsen: A lot of our clients, they're older, they're coming to get their estate planning done because they recognize they're not going to live forever, okay. We have another class of clients that come in, they're young, and they've got young kids, kids under the age of 18. We have some special state planning tools for them.

Attorney Holley Knapik: Exactly, yes. When we're dealing with younger couples with minor children, we do actually tend to do a trust as part of their estate plan. Then in that trust, what you're able to do is ensure that your assets are held in trust for the benefit of the minor children should something happen to both parents.

Attorney Tom Olsen: Yes, Mom and Dad pass away, you can't just turn over their wealth to a five-year-old.

Attorney Holley Knapik: You cannot.

Attorney Tom Olsen: Now let's say that you did not do that trust, which we're recommending for people, what's going to happen is that five-year-old's money is going to go into a legal guardianship. We don't know who the court will appoint as legal guardian to manage that money, but the law will also require that that money be turned over to that five-year-old when he or she turns age 18.

Attorney Holley Knapik: 18, exactly.

Attorney Tom Olsen: By doing a trust for this money, you as a parent then get to dictate who's going to be in charge, who's going to manage that money on behalf of the five-year-old if mom and dad pass away, and you get to dictate at what age that money would go to this five-year-old. Generally, we're using age five, but sometimes people do, just give it 25. Sometimes people do half at 25, half at 30, a third at 25, a third at 30, a third at 35. All kinds of options available there.

Attorney Holley Knapik: There are. There are many options, and it's what works best for you and your family, and what you feel comfortable in giving your child and what age to receive.

Attorney Tom Olsen: We know that getting your estate planning done if you have young children, man, it's just part of the plan.

Attorney Holley Knapik: It is.

Attorney Tom Olsen: It's a responsible thing to do. Remember that when we do your estate planning in that situation, we're also naming who would be the guardian, who would be the parent to your child or children if both mom and dad passed away.

Attorney Holley Knapik: Yes.

Attorney Tom Olsen: We would love to assist you with that here at the Olsen Law Group.