Mother of Honey Boo Boo Smartly Sets up a Trust for Her
January 18, 2013
Many people are enamored of the reality TV star known as Honey Boo Boo, a cute 7-year-old child beauty pageant contestant. Others are drawn to the show by the odd antics of her family, while non-viewers may be mystified as to why so many people watch her. But whatever you think of Honey Boo Boo, one thing is clear: She is making an awful lot of money, especially for a child. Her mother has intelligently decided to safeguard those earnings for the future, setting up a trust for the child. Such an estate planning technique is a wise move.
The vast majority of the money the child receives from each episode goes right into a trust account. The mother has set up trust accounts for each of her four daughters, and one for her granddaughter, currently an infant. Funds held in the account are available for each child in the event of a medical emergency or educational expenses. Aside from that, the children will not receive the money until they turn 21.
The family’s other three daughters are 12, 15, and 18. The child’s mother is known for her frugality, but any parent can set up a trust fund. Trusts can be useful to provide for the future of a child in case one or both parents die and can be beneficial even when the family does not have the kind of assets and earnings that can be generated by starring on television.
In order to make sure that the right kind of trust is established and that it is properly funded and complies with all legal and tax requirements, it is a wise move to consult with an experienced estate planning attorney when setting up a trust for you or a family member.
Source: MSN Money, “Honey Boo Boo’s trust fund: A smart move,” Karen Datko, Jan. 8, 2013