Estate Planning for Parents
Although estate planning is important for everyone, it is essential for parents. A comprehensive estate plan customized to meet the needs of your family allows you to: (1) designate a guardian to take care of your children if you die, and (2) decide who will manage your child’s assets until they are mature enough to manage those assets on their own.
Without an estate plan in place, your children’s fate is left to a judge. Although judges do their best to decide what is in your children’s best interest, you know your children and your family better than anyone, and you know what is best for them.
Further, without an estate plan in place, your children will receive all of their inheritance when they turn 18. Although we all strive to raise our children to be level-headed adults, there are few 18 year olds who are ready to manage their finances independently. An estate plan allows you to appoint an adult to manage your children’s assets until they are old enough to do so themselves.
An estate plan also allows you to decide when, and how, your children inherit their assets. For example, many estate plans provide that a child inherits 25% of her assets at age 23, 25% at age 28, and the remainder at age 30. You can also set terms on what a child may use their assets for. For example, for college tuition but not to buy a sports car.
Want more information on Estate Planning for Parents? Click here to read my blog post on how to leave money for your children. Click here to read my blog post on choosing the right guardian for your children.
For more information download "A Parent's Guide to Estate Planning"