Estate Planning and Minor Children
You may be motivated to estate plan because you started a family or have children. However, a Clearwater estate planning attorney can explain to you that there is much more to an effective estate plan than simply signing a will or living trust that will give away all of your assets to your children. In fact, if your children are not mature enough, the inheritance may be wasted.
For example, you may want to think about whether you were ready to receive a large inheritance when you turned 18 years of age. The answer is probably “no.”
How a Clearwater Estate Planning Lawyer Can Help
There are many effective estate planning strategies to provide for your children to ensure that the inheritance is not squandered. Some strategies can include:
- Raise the Age Limit. You may draft a living trust in such a way as to give the inheritance to your children at an older age. As mentioned above, an 18-year-old may not have the maturity to handle a large sum of cash. However, depending upon your child, a 25-year-old or 35-year-old may be ready.
- Provide Milestones. Instead of setting an age where a trustee will give your assets to your children, you can provide milestones like graduating from college, getting married, and having children. When the child accomplishes each milestone, the trustee may make the specified payment.
- Give Income. If you have a large enough asset, you may provide that your children only receive the income generated from the asset until a certain age. For example, if you own a business, you can provide that the income from the business goes to your children while the business itself will remain with the trustee. Only after the child reaches a certain age or other milestone, will the child benefit from the business.
- Leave It To a Guardian. For young children, you may want to specify a guardian and provide discretion to your guardian to determine how much and when to provide your assets to your children.
Contact a Clearwater Estate Planning Attorney
If you have any questions about estate planning and ensuring that your children are properly cared for, contact an experienced Clearwater estate planning lawyer at the Coleman Law Firm by calling 727-461-7474.