A trust in your last will and testament, also called the testamentary trust, can protect your beneficiaries. For beneficiaries who are minors, a trust is important to protect their inheritance until they reach an appropriate age. There’s a big difference between 18 and twenty five when it comes to financial management.
A trusted friend and relative can be appointed to manage the trust until your beneficiary reaches an appropriate age. Until then, the trustee has discretion to spend on school and other necessary items.
For some beneficiaries, a lifetime trust is necessary due to concerns about creditors, divorces, substance abuse, or other long term financial instability. By having a trust, the trustee will have the discretion to distribute on the beneficiaries behalf and not have assets go directly to the beneficiary where they could be rapidly depleted.