12. Age of Distribution to Children

The formula for distribution of your assets in the event of a common disaster is an important decision you and your spouse will need to make. Most state laws grant the entire estate to children on their 18th birthday. Few persons this age are capable of handling money wisely, nor do they have the time if still in school. Therefore, you may wish to specify in your Will or Trust the exact arrangements and ages you feel are appropriate for your particular family circumstances.

Many factors influence these decisions, such as: Health of the children, their relative ages, the size of the total estate, special needs of certain children, sex, marital status, etc.

These factors may warrant distributing the principal of your estate in gradual installments or even varying the formula for each child. These are several common distribution formulas:

...........(1)................(2).....................(3).........

1/2 at age 25......1/3 at age 25...........1/3 now, or at age 25

1/2 at age 35......1/3 at age 30...........1/3, 5 year later

...................1/3 at age 35.......... 1/3, 10 years later

Normally, these assets are held in trust for each child's benefit until the age you have designated for distribution. Trusts normally
provide for payment of income to the child or the child's guardian, as well as distributions of funds from the principal as needed for medical care, education, business opportunities, etc.

The distribution formula you select should be flexible enough to allow for the needs of the child without creating the burden of investment problems that are beyond the child's experience.

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