6 Steps to Doing Your Kids' Trust Fund Right
By Rick Kahler
NEW YORK ( AdviceIQ) -- How do you stop your offspring squandering their inheritance? When passing wealth to your kids, consider creating a trust to limit the later generation's ability to tap into the principal.
Several astute readers suggested this strategy after my recent article cited research that shows 90% of inherited wealth is gone by the third generation.
There is no question a trust, done correctly, can go a long way to preserve wealth after the death of the wealth accumulator. Let's explore what "done correctly" means.
1. Trust law is complex. Engage an accountant and attorney with strong skills and expertise in trusts.2. Be sure the assets you intend to go into the trust will actually transfer.
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