When you are a parent of young children, estate planning isn’t your biggest concern. You are dealing with never-ending laundry, shuttling your kids to and from school, play-dates and appointments, and generally keeping your kids safe from harm. But estate planning should be on your to-do list, because it’s your only opportunity to spell out a plan for your kids if tragedy occurs.
Most estate plans we draft for families with young children include a Trust. Trusts can be created to exist now (also known as a Living Trust) or after your death (a Testamentary Trust). There are pros and cons to both options and an estate planning attorney can customize what’s right for your family. Regardless of what estate plan you choose, you can rest easy knowing that your children’s welfare and finances will be covered.
An estate plan protects your family by:
- Naming a guardian for your children. Through your Will, you can name guardians for your children. Without this crucial document, the government would decide. At Heritage Law, we can help you assess your options. For example, many of our clients initially believe it’s best to name a couple as the guardians for their children. However, this isn’t always best, as you must consider what happens if the couple gets divorced–is there one person you would choose over the other? If so, you should probably only identify that person as guardian. This is one of the many issues we can help you evaluate.
- Making sure your children are financially secure. By creating a Trust, you are establishing a tool for your children to receive their inheritance in a planned and controlled manner. This is critical because minors can’t inherit money or assets. Through a Trust, you can give instructions about how and when your children will receive their inheritance. For example, you probably don’t want your children receiving everything at 18 years old. Many families choose to distribute their children’s inheritance over a period of time–for example a portion at age 25, 30, 35 and 40 years of age. During this time the assets can be invested and will grow, significantly increasing the inheritance later available to your kids.
- Explaining your wishes. If you don’t write down your wishes and create a proper estate plan, the government will apply its “one size fits all” rubric. Your assets may be distributed to heirs who you may have written out of your estate plan; family members not of your choosing may raise your children; the family home you hoped to preserve for generations may be sold. An estate plan takes the mystery out of forcing other people to guess what you want. Instead, it gives you control over what will happen to your things and under want conditions people will inherit.
At Heritage Law LLC, we are happy to help you create an estate plan that accomplishes yourgoals and fits within your budget. Our founding attorneys, Emily Sullivan and Kristi Burmeister, are both mothers of young children. They understand your concerns and desire to protect your children.
Heritage Law offers free consultations. For more information, visit us at https://www.heritagelawkc.com or give us a call at (913) 444-9384.
