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Estate Planning 101 - Age-Based and Other Restrictions
Estate Planning 101 - Age-Based and Other Restrictions

Let's dive into Restrictions. What they are, our standard options, and more!

Updated over 5 months ago

Watch this helpful video on age-based restrictions and learn about additional or alternative restrictions below.

Additional Options for Restrictions

There are several pre-populated restrictions from which to choose. If you choose yes to any restriction, the default is that the trustee (person in charge of the finances) will be able to make payments for that beneficiary’s health care, education, and support (all defined terms in the documents) before the beneficiary reaches the determined age(s). The assets are NOT frozen!

Your trustee may use the assets to help your beneficiaries maintain the life they are accustomed to, within reason, and to assist with expenses like tutors, rent, health care costs, and the down payment on a home). We suggest resisting the temptation to be too specific here. You selected this trustee for a reason and would not want to unintentionally limit the trustee’s ability to adjust to changing circumstances after your passing.

Special Needs Trust

A Special Needs Trust is utilized for beneficiaries with needs-based public benefits (their eligibility is conditioned upon having very few assets). A special needs trust would supplement this beneficiary’s current benefits (NOT supplant them).

If you are unsure if a beneficiary requires a special needs trust and did NOT select this option, rest assured that the trust language authorizes the trustee to convert any share to a special needs trust if it is appropriate to do so after your death.

Age-Based Restrictions

It is common for clients with younger children to choose one of the standard options within the software. At the trustee's discretion, each beneficiary will have the opportunity to receive payments for their health care, education, and support. The pre-selected ages only stipulate when the beneficiary receives their inheritance.

Never in Control

This is used in extreme circumstances where you do not want a beneficiary to control their funds at any age. Use this cautiously, as a trustee will be needed for that beneficiary’s entire life.

Other

If none of these fit what you are looking for, select “other” and write in what you would like.

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