Creating wealth that lasts for generations is something many families strive for, even through adoption. You can achieve this through a tool known as a dynasty trust. This trust operates like a special savings account designed to support your family members, such as your children and grandchildren, long after your passing. It’s like a treasure chest that keeps giving to your family long into the future.
Adoption
Now, let’s talk about adoption. You know how families can adopt kids who aren’t born into their family? Well, sometimes adults can also undergo adoption, although it’s less frequent. But were you aware that adoption legally integrates someone into the family, akin to being born into it?
So, imagine you have a lot of money and you want to make sure it goes to the right people, like your kids or grandkids. But what if one of your kids doesn’t have any kids of their own? Well, they could adopt someone, even an adult, and then that person could get some of the money when the time comes.
The “Legal Stuff”
But there’s a lot of legal stuff to think about. For example, if your trust, which is like the rulebook for your money after you’re gone, doesn’t say anything about adopted people, it could cause a big mess. This happened in a real case called Morse v. SunTrust Bank, where someone didn’t say what should happen if someone was adopted as an adult.
In this case, Molly, who didn’t have any kids of her own, adopted two adults so they could get some of her money when she passed away. But her family didn’t think it was fair and said she was lying. They went to court, and the first judge agreed with them. But then, another judge said Molly did nothing wrong because there were no rules against it.
So, if you’re planning to leave money to your family through a trust, it’s super important to talk to experts, like lawyers who know about adoption and money stuff. They can help make sure everything is fair and clear in your trust, so there won’t be any fights later on.
