If your children set up revocable trusts for themselves and you make gifts to the trusts, then the kids could use that money for anything they want. However, the money in those trusts will not be protected from future spouses as a result of being in trust. It would be no different than if you gave the money directly to the kids
Depending on the state in which they they may live at the time this comes up and how the money has been used during the marriage, there may be some protection for assets they owned before marriage.
What you describe could be accomplished by creating irrevocable trusts for the kids. They are a bit more hassle to set up and maintain, but they will protect the assets.
You are well below the federal estate tax limit, so you do not need to worry about moving money out of your estate for federal tax purposes.
Revocable trusts can be helpful in taking over affairs for someone no longer able to manage for themselves. You are relatively young yo be concerned about that now but as long as you are updating things, consider who you would want to do that when the time comes. For this, you and your spouse could set up revocable trusts for yourselves. This would have nothing to do with gifts to your kids.
In principle, durable powers of attorney should help in this situation but you can read many threads on here about people who found out that a DPOA was useless because financial institutions refused to honor them.
Depending on the state in which they they may live at the time this comes up and how the money has been used during the marriage, there may be some protection for assets they owned before marriage.
What you describe could be accomplished by creating irrevocable trusts for the kids. They are a bit more hassle to set up and maintain, but they will protect the assets.
You are well below the federal estate tax limit, so you do not need to worry about moving money out of your estate for federal tax purposes.
Revocable trusts can be helpful in taking over affairs for someone no longer able to manage for themselves. You are relatively young yo be concerned about that now but as long as you are updating things, consider who you would want to do that when the time comes. For this, you and your spouse could set up revocable trusts for yourselves. This would have nothing to do with gifts to your kids.
In principle, durable powers of attorney should help in this situation but you can read many threads on here about people who found out that a DPOA was useless because financial institutions refused to honor them.
Statistics: Posted by afan — Mon Sep 01, 2025 9:57 am — Replies 2 — Views 211