Estate plans can protect your children in a few ways, which is why it’s a good idea to talk to an estate planning attorney as soon as possible once you know you’re going to be a parent. Two important things that your estate plan can offer include ways to protect your children’s inheritances and designating a guardian who will take care of them if you’re no longer able to.
Guardianships and trusts can be used to create a situation where your child will have the necessary funds to support themselves or their educational goals. These can also make sure your children have the support of at least one trustee and guardian who can manage those assets and take care of them until they reach the age of 18.
Why is it so important to choose a guardian?
With your guardianship decision, you’re choosing one or more person who will care for your child if you pass away. For example, you may ask one of your children’s aunts or uncles to take over their care if you pass away..
Why does a trust help?
A trust protects any assets you want to leave to your child. You can have your life insurance transferred in to a trust following your death, for example. The trustee will have the responsibility of protecting those funds, and potentially growing them through investments, until your child needs them or meets the requirement to be paid out (which is something you will set up as well).
Both trusts and guardianships are essential when you have children. These are protective elements of an estate plan to discuss with your attorney.