If you plan on leaving assets to your children, you need to protect your estate to ensure that it serves its intended purpose after you pass away. A professional may advise you to distribute your wealth to your children when they attain the right age. However, there are always uncertainties in life, so you’ll want to make provisions to protect your children and ensure they receive what you intend.
Drafting a will
Wills can be drafted by anyone; your will designates who gets to receive your assets once you pass on. If you die before your children are 18, your will should designate who’ll care for your children. Since children below 18 cannot have assets, your will specifies the financial guardian of your children’s assets until they become of age.
When you die without a will, your assets will be divided by the state. The beneficiaries might be people whom you didn’t want inheriting your wealth. Therefore, make sure to write a will and name a trustworthy guardian to protect your children’s inheritance.
Trusts have been embraced as estate planning tools for most people. These tools are beneficial since they can reduce tax and probate on your property. Here are the two types of trusts that can have specific benefits for your children:
- Certain trusts care for children when the parents die before they turn 18. A trustee is required to meet all the children’s’ expenses.
- Special needs trusts can be set up for children who need extra care.
Powers of attorney
Powers of attorney are documents written to establish a chain of command when you can no longer make rational decisions about your estate. You’ll want to sign power of attorney over to someone you trust who will help take care of your children when you’re not able.
Do you wish to protect your children when estate planning? You may want to consult an estate law attorney for further guidance.