There are numerous considerations for you to make regarding your estate plan. While many people craft a will or trust to pay the least amount in taxes, it is also vital to structure the plan in such a way that it will not lead to conflict within the family.
Unfortunately, many people end up making mistakes in their estate plans. This matter becomes much more complicated when a person passes away with children who are still younger than 18. To prepare for anything, it is vital to create a will in such a way your children will receive the full amount of their inheritance according to your wishes.
Do not appoint a court guardianship
Everyone should have a guardian in place to watch their children. This should be a trusted loved one you know is capable of raising your children in the event both you and the child’s other parent pass away. You do not want the court to appoint a guardian.
This process is lengthy and expensive, and any costs related to appointing the guardian will come out of your kids’ inheritances. Instead, the proper way to keep your kids safe is to use a protective testamentary trust. This allows you to appoint someone to oversee the inheritance, and you can decide when exactly the children will receive the money.
Do not leave assets using a simple will
When you still have minor children, you want more than a simple will in place. With this, your kids will receive the full amount of their inheritance as soon as they turn 18. You may have other wishes.
Many parents want to place conditions on an inheritance so that the kids do not receive a massive lump sum as soon as they are 18. All parents should want their children to excel in school and pursue a worthwhile career. However, children who know they will get a lot of money by simply turning 18 may not achieve as much.