Trusts in Wills for college age kids

[Anonymous]

We'll likely be leaving lots of money to our children. If we both die soon, there would be a ton of money. Curious how others have chosen to spread out the inheritance to the kids (over time). Our current Wills hold the money in trust until each kid is 25. The Wills were drafted when the kids were toddlers and 25 seemed to be a reasonable age but now not so sure. And there was no real money to speak of back then.

[Anonymous]

1/4 at 25
1/3 at 30
1/2 at 35
Remainder at 40

[Anonymous]

How about setting it up so they don't know about the money? And then at 35, whatever college and grad school debt they have, the trust pays off the balance. Then at 45, whatever is left on their mortgage is paid off. This will help build character and a strong foundation. They will learn to become productive, contributing members of society with skills and less time to develop and devote to dangerous vices. And when they are 55, the remainder is passed on to them. Each time there is a payout, have the trustee make it seem like this was all there was and there is nothing more. Otherwise, they may just kick back and wait for the next hand out.

[Anonymous]

Anonymous wrote:How about setting it up so they don't know about the money? And then at 35, whatever college and grad school debt they have, the trust pays off the balance. Then at 45, whatever is left on their mortgage is paid off. This will help build character and a strong foundation. They will learn to become productive, contributing members of society with skills and less time to develop and devote to dangerous vices. And when they are 55, the remainder is passed on to them. Each time there is a payout, have the trustee make it seem like this was all there was and there is nothing more. Otherwise, they may just kick back and wait for the next hand out.

From a legal point of view it is problematic if the beneficiaries of the trust (your children) are not aware that there are more assets left in the trust, because there will be no one to hold the trustee accountable. From a psychological point of view, this setup would show a big lack of trust in your children. If I were them, I would be deeply hurt.

Also, give your children some credit and don't assume they will be parasites. Waiting until they are 45 or 55 years old is way too long. I would go with the recommendation of the first PP.

[Anonymous]

College, food, clothing and nominal stuff until 35. I got access to my trust fund at 18, and it was a huge mistake. I think 30 could be reasonable, but hopefully my son will be self sufficient and won't actually need the money.

[Anonymous]

Spend it now. Let your kids earn their own way.

[Anonymous]

Anonymous wrote:Spend it now. Let your kids earn their own way.

Hmmm. If only there were a way to know how long we would live. . . .

[Anonymous]

I think we did half at 25 and half at 30.

[Anonymous]

My mother has written my kids into her will for a substantial sum and I believe it is deferred until they have graduated from college, although they may use funds to pay for college. I would much prefer it be more graduated than that. Hopefully it will be on non issue as she is healthy and they are approaching college age.

[Anonymous]

1/3 at each of 25, 35 and 40.

[Anonymous]

10 percent at college graduation so that they have some cushion to look for a job and pay security deposit etc
30 percent at 30, 45, and 60

[Anonymous]

We have it spread out every five years from 25 to 40, but it does see weird being only 35 myself