Adoption & Step-Child Provisions
What is it?
Trusts must address how adopted children and step-children are treated. Options include: treating adopted children identically to biological children, including only children adopted before a certain age, excluding adult adoptions (which can be used to game inheritance), or providing different treatment (discretionary benefits rather than mandatory shares).
Why is it important?
Without clear language, state law default rules apply—and these vary significantly. Some families want to treat all children equally regardless of biology; others want to preserve wealth for genetic descendants. Adult adoption (adopting an adult partner or friend) is sometimes used to create inheritance rights, which you may want to prevent. Clear provisions avoid family conflict and potential litigation.
Example Language
For purposes of this Trust, "descendants" includes: (a) biological children and their descendants; (b) children legally adopted before age 18 and their descendants; but excludes (c) step-children not legally adopted, and (d) any person adopted as an adult. The Trustee MAY make discretionary distributions for the benefit of step-children or adult adoptees, but such persons shall not be considered beneficiaries with mandatory distribution rights.