This memorandum contains a summary of information obtained from laws, and legal publications and should not be viewed or relied upon as legal advice. I urge readers of this memorandum to consult legal counsel regarding specific legal issues and factual circumstances
Last week I read the article, excerpted below, on the CNN site discussing whether our children spend or keep their allowances.
“NEW YORK (CNNMoney) — Kids are raking in an average of $15 a week in allowance, according to a recent survey. But money earned isn’t money saved, and a majority of parents say their kids are spending their allowance just as quickly as they receive it.
As the survey found, allowance money is rarely saved. Parents say most of their kids’ allowance is quickly spent on outings with friends or toys.
The AICPA’s survey found that 61% of parents pay an allowance, and more than half of them starting making these payments to their kids by the time they’re eight years old. Yet only 1% of parents say their child ever saves any of that money.”
I have to wonder…if kids are having so much trouble being savers with their allowances what will they do if their parents do not draft a Will and they possibly receive their family’s estate by the young age of 18?
Will they go to college?
Will they still qualify for financial aid?
Will they have any money for graduate school, to buy a first home, pay their medical insurance or car insurance?
A Testamentary Trust many times is a GREAT option for new parents.
Please, if I can help answer any questions about Estate Planning, doing a Will, setting up a Trust, feel free to give me a call.