Keep the specific needs of your children in mind when planning your estate

It is more than likely that the reason for creating your estate plan is to ensure that your family is financially secure after you are gone. Wealth planning for families with minor children can present parents with challenges and difficult choices. The challenges arise from the minor’s legal restrictions on ownership of property and from the parent’s desire to bestow assets on a minor, but to defer the minor’s actual possession until the minor has reached a certain level of maturity or at least reached the age of majority. In addition, planning for minors also includes planning for custody of the minor in case both parents die before the minor reaches the age of legal majority.

You can appoint a guardian for your minor children in your will. If there is no compelling reason not to do so, the court will usually accept your choice of guardian. Once appointed, the guardian has a profound influence on the child’s value system, religious beliefs, education and, in general, the child’s development into adulthood. Therefore, you should carefully consider the choice of guardian and discuss the prospect of guardianship with those you designate.

Once a guardian has been chosen, the most effective way to ensure that each of your children receives the necessary financial support to ensure they are well cared for is to establish your Revocable Trust and establish a provision. set it on your death. A “Separate Share Trust” is so called because a separate trust is created for each of your children. This can make it easier for parents to account for the differences in each child’s needs and inclinations. If a child has special medical or educational needs, or if there is a major difference in the ages of the children, parents can determine the appropriate portion of the estate and set the terms of division accordingly. So, by using Separate Share Trust, you can ensure that each child is cared for according to their specific needs.

In the Separate Share Trust, the parent/donor can decide under what circumstances and at what age each child will be mature enough to take possession of the property. This ensures that children do not recklessly waste the money when they turn 18. However, one drawback to using “separate share” trusts with multiple children is the difficulty in administration. Depending on the provisions of the trust agreement, the trustee (who need not be the legal guardian) may be accountable to each beneficiary individually and may be required to keep records of the net distributable income attributable to each beneficiary for income tax purposes.

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A grantor does not have to have a large estate to create a trust. The wealth you leave to your children can add up faster than you think. If you add up the value of your home, savings and investment accounts, you may end up well above €75,000. In these cases, a trust is usually the best solution. In addition, the trust could be financed by life insurance policies that could make the value of their estate much higher. Once established, the trust would provide for the care and education of the children and make money available to them when they reach certain ages indicative of maturity 18, 21, 25, 30, 35 or any other age you specify. You have worked hard to give your family a bright future. Plan accordingly and make sure your work creates the best opportunities imaginable for your children.