Factoring Your Children Into Your Estate Plan

There are many estate planning considerations that parents need to make. Although grim, parents need to consider and plan for the possibility that one or both parents may suddenly become unable to care for their minor children. A recent article discusses some of the estate planning considerations that parents should make.

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Parents need to first consider how they would like their estate distributed if only one parent passes away. For example, the parent could leave some assets directly to the children. Alternatively, the parents could both choose to leave everything to the other parent, with the understanding that the surviving parent would provide for the child. When considering this option, parents must consider the possibility that the surviving spouse will remarry and have more children.

Parents also need to consider how they would like their estate distributed if both parents pass away. It is typically dangerous to allow children to directly access their inheritance while they are young, as they will not be able to appropriately handle it. Many parents instead choose to set up trust accounts for their children. Parents must also consider who they would like to serve as the guardian for their children, as well as who they would like to manage their children’s assets.