Common “Pot” Trusts: Why You Shouldn’t Treat Your Children Equally

If you have minor children, you most likely would want them to be provided for in case something terrible happens to you and your spouse.  How would you split your assets between them?

At first glance, your natural tendency is probably to respond, “equally, of course”.  For the most part, we love our children equally, and so logic dictates that they should receive equal amounts.

But consider this — Do you know for certain that you spend equal amounts on each child?  Or do you rely on faith that as extra-curricular activities, doctor visits, gifts, etc. come up throughout your kids’ lives, everything kind of washes out?  Most would answer yes to the latter and not the former question.

On the other hand, pure equality can be a harsh mistress.

Do you deny your son a doctor’s visit if he has already gone three more times than his sister in the last six months?  If you spent a little bit extra on your daughter’s birthday party, do you skip this year’s dental check-up?  If your son broke his arm and went to extensive physical therapy for several months, do you then send your daughter to a special acting camp to compensate?

Or do you simply dole out money for your children as the need arises?

The Common Pot Trust

The Pot Trust takes this concept of spending for your minor children as needed and applies it to your trustees.  Instead of your will or trust passing your estate into separate, equally funded trusts for each child, the whole “pot”, is combined into one trust that benefits all the children together until they all reach adulthood.

See Common “Pot” Trusts: Why You Shouldn’t Treat Your Children Equally,, July 26, 2018


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