Creating an estate plan will help carry out your wishes and make a big difference to your children. In the unfortunate circumstances of your death, you don’t want your young children to have to worry about who will gain custody of them, where they will live, or how they will pay for things like food and school. With a solid estate plan, there will be no question of who will take care of your children and how they will fare financially.
Family estate planning helps with your peace of mind, but it also ensures that your kids are protected. A good estate plan will protect your children, especially important if you or your spouse pass while your kids are still minors or young adults.
So, what differences can an estate plan make to your children?
An estate plan designates a guardian(s) for your children should something happen to both parents. One of the hardest decisions to make when creating an estate plan is determining who will be the best guardian for your child. If you have someone in mind, here are some things you should consider:
- Does your child have an existing relationship with the person and is it a good one?
- Does this person have similar values as you and your spouse?
- Does the person have a demanding career traveling a lot? Will they be accessible for your child?
- How responsible is this person? Do they get bills paid on time, and can they hold down a job, or are they always in debt and unemployed?
- Without an estate plan, a judge, not you, will decide for your kids. The court might not choose your chosen guardian. Or worse, someone you would not want could be chosen by the court.
Your estate plan can ensure that your assets will be available to support your children for their lifetime. Asset protection planning involves making decisions today to protect yourself, your family, and your hard-earned assets from risks associated with lawsuits, creditors, or bankruptcies.
An estate plan regulates when and how your children receive your assets. It helps make a big difference for your children who may not be financially savvy. You can also dictate what the assets are used for, such as education expenses. Without an estate plan, your assets could be held in probate for years. If so, your children would get their entire inheritance at age 18 to use at their discretion.
Regardless of the types of assets you own, or how many assets you own, you may want to consider a Living Trust. A revocable living trust can protect your family in many ways. Living Trusts tend to be a more flexible tool to protect your children, a trust puts you in control of their future regarding their personal and financial care.
There are many options and benefits of how an estate plan can benefit your children and make a difference in their lives.
An estate planning attorney, like those at Legacy Counsellors, P.C. can help prioritize what’s important to you and what you want for your children. We’re here to help you create a family estate plan that helps you feel confident about your child’s future so you can focus on enjoying the present. To schedule a free consultation, contact us today!