Trust for a child?

[rhh]

What is the name of your state? CA

Facts...

Father of young boy recently killed. Sad day for the family! I'm asking for your guidance, as I'd like to help the family with some financial planning.

Mom and dad never married. Mom on welfare...can't hold a job, etc.

Famliy of the father would like to leave about thirty thousand for him in some kind of an account that he would be the bebeficary of and mom can not touch. Money is a mixure of contributions and dad's assets. I think it would be wise to lock up the money in a mutual fund until he is eighteen or twenty-one: not sure what the law would allow.

Thanks in advance for your advice...

 

[Dandy Don]

This is what certified estate planning professionals and/or the trust department of a bank is for.

 

[curb1]

You might consider a college savings plan for your state. He could use it for college and all income would be tax free during that time. It would be administered by the plan. The mother could not get it. The owner could be anyone who has the child's interest. This would be the absolute best use of the money and would not require setting up a trust or getting outside costly advice. It is very simple to set up the college savings accounts. Also, anyone would be able to contribute to the account if desired (like birthday presents etc.). The contributions are also income tax deductible in most states. There are several investment choices (mutual funds or bonds) and then the plan can be left alone for the years until college.

 

[Texas Pooh]

Are the assets going to go the child to begin with? without a trust? I don't think the family (however well intentioned) can dictate that. Attorney consultation is definately required.