Personal Injuries: Basic Knowledge For You

Reasons to Leave Money in Trust, Rather Than to Your Sibling

If you're single and don't have any children, you should still talk to an estate planning lawyer. In the event of your death, especially if it's unexpected, estate planning will ensure that your financial assets go where you want them. Common ideas for individuals in your situation are to give your money to any nieces and/or nephews. Many people will simply leave the money to a sibling who can give it to his or her children when they reach adulthood. Another idea is for the money to go into a trust where no one can touch it but the children once they're adults. Here are three reasons that the latter option is the better choice.

Your Sibling Can't Waste It

In most cases, your money would be safe in the hands of a sibling until your niece or nephew is old enough. However, there can be issues that get in the way of your plans. For example, your sibling might not be overly responsible with money, and could begin to dip into the funds here and there until they're depleted or completely gone. Also. the sibling may simply see the money as a windfall for him or her, and spend much or all of it in one shot. Keeping the money in trust will prevent such unfortunate circumstances.

Your Niece/Nephew Can Use It How They See Fit

If you're really determined to give a thoughtful financial gift to your niece and nephew, leaving the funds in trust is the way to go. This way, they'll be able to use the money as they see fit, whether it's to help pay for college tuition, to buy a much-needed vehicle, or even to travel the world. If you leave the money to your sibling to be given to your niece or nephew, there may be a situation in which the sibling dictates how the child is able use the money.

It May End up Being Worth More

If you can place your money in a trust that yields a good interest rate, you'll have the satisfaction of knowing that there will be more money for your loved ones by the time they can access it. If your niece or nephew is young, the money may be able to grow for several years or perhaps even more than a decade. This means that it will amount to a lot more than if you were to give it to your sibling right away.

About Me

Personal Injuries: Basic Knowledge For You

I have worked as a legal office assistant for about 20 years. The office specializes in personal injury claims, and many clients are looking for settlements. I have great compassion for the individuals I see, and most people are looking for money to pay their bills. Unfortunately, insurance claims are difficult and clients often file the wrong paperwork. They don't see many doctors due to costs, and settlement offers are generally low. I know that lawyers can help to raise claims substantially. They know the law and they can offer advice to clients so good results are seen. I want you to learn some basic information about personal injuries, insurance settlements, and the general claims process. Your rights and needs are important, but it's difficult to secure a settlement if you know nothing about the law. Gain some knowledge today, so your personal injury decisions are the right ones.

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