Many Delaware residents want to protect their assets and wealth for future generations. As a result, they often consider using trusts when going through the estate planning process. Trusts can place added protections on assets as well as allow the trustmakers to stipulate when and how assets in the trusts can be used.
However, if the trusts are created when the beneficiaries are young, some parties may wonder whether they should even tell those young loved ones that the trusts exist. This worry often stems from older individuals thinking that their younger family members will consider themselves “trust fund babies” and not work as hard as a result. Additionally, the trustmakers may fear that knowing that they already have assets waiting for them no matter what type of life they lead may set the children on a negative path.
Of course, if the children are extremely young, telling them this information may not have benefits or negative repercussions because they likely will not understand. However, as they get older, the choice of whether to tell the beneficiaries may leave the trustmakers’ hands. Certain laws require that beneficiaries obtain enough information about trusts to protect their personal interests, and by the time the beneficiaries turn 25, restriction of information may no longer be allowed.
Estate planning involves taking many factors into consideration, and knowing the right time to reveal certain information can be tricky. If Delaware residents are concerned about the laws governing the disclosure of information, they may want to discuss those concerns with their legal counsel. The right time to talk about plans differs from person to person, but knowing when withholding information is not allowed could be useful.