Page 47 - Ultimate Guide to Estate Planning Third Edition_Neat

Age of Majority.
Without any planning, your children (or
grandchildren if your child predeceases you)
will ordinarily receive the funds at the age of
majority, or 18. In my opinion, doing nothing
can fundamentally change the lives of your
loved ones. At 18 years of age, and a few
years older, most young adults with wealth
have a higher susceptibility to addictive,
destructive and wasteful behavior. They also
are more likely to spend money on non-
assets. Purchasing vehicles that are
expensive and depreciating, engaging in
unsustainable travel and entertainment
opportunities, are far more likely in this age
group than in older groups.

Staggering distributions so that a lump sum is
received at 25, another lump sum at 30 and
the remainder at 35 is based on the
assumption they have attained financial
maturity and are less likely to waste the
money. Why take the risk?

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