Should I divide my property into separate shares for my minor children?
09/13/2009
Q: Should I divide my property into separate shares for my minor children?
A: During the period of time when children are minors, a common trust is often a good planning tool to use. A common trust is simply one cache which holds all of the trust property for the benefit of all minor children.
While property is in a common trust, there are no separate shares for each child. Rather, the trustee is directed to use any or all of the property for the benefit of all of the children on the basis of the individual needs of each child. This is very much as parents use their resources, in whatever quantities, equal or unequal, in raising their children.
There is no requirement that the children receive equal amounts of property while it is in the common trust. Consider a family with three children, 18, 12, and 7. If the trustee is directed to use the common trust property for the benefit of the three minor children on the basis of their respective needs the youngest child may very likely end up receiving a greater portion of the trust property over time than the two older children simply because the youngest is at least 11 years from being independent and able to seek gainful employment.
The oldest child may choose to attend college, which is expensive; but the younger two will have additional needs before they even reach college, and inflation is likely to ensure that their college costs will be significantly higher than those of the oldest child.
–Kurt V Beasley, Attorney
