Will or trust
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Will or trust
I am a single mom that was just diagnosed with
cancer. My kids are 21 and 19. I have a life
insurance policy for 350k I want to leave it to
my kids if I die but I dont want them to have
access until they are older or I want to appoint
someone the ability to approve or deny the
money to my kids until they are 25-30 years
old. Would a will or trust be better for this.
Asked on November 24, 2018 under Estate Planning, Utah
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 2 years ago | Contributor
You can have a will which establishes a trust (called a "testamentary trust," because it only comes into being when the person creating it passes away, to distinguish it from an "intervivos trust," which you create and put money into while still alive) for your children, and you designate the beneficiary of the life insurance to be the trust: so the life insurance money will go into the trust. The trust will have a trustee (someone you trust to manage it, such as a sibling, trusted friend, trusted attorney or accountant, one of your parents, etc.) who adminstrates it and distributes the money from the trust according to the instructions you set down when creating the trust. (For example: you can have them each get $500/month to help them out with bills; give the trustee the authority to spend more for their health, or to help them out with school or buying a home; and have them get the remaining money when they turn 30.) Let an attorney help you set up the trust, etc. so it's done right; any trust and estates lawyer should be able to help you.