Part of being a parent involves ensuring your children are secure financially when you pass away. This is the reason why it is paramount to pursue estate planning early on when your children are still minors. Many parents have discovered the benefits of trusts for children, and you may want to consider placing your assets within these confines to ensure your kids are set up for success.
Consider Where Your Kids Are in Life
You should update your estate plan at certain milestones in life, including the birth of a child. When they are all minors, you may think it is best to leave assets to them equally. However, later in life, one child becomes more financially successful than the other. One may start a successful business while the other goes into teaching, and while he or she has a good career, it does not provide the same financial benefits.
At this point, you may realize it is more prudent to leave more money to the child with the lower salary. Before doing this, it is important to talk to your kids about the division so that you do not foster resentment. All parties involved are likely to understand, but you just need to be transparent.
Consider How You Want the Money Spent
In a trust, you can lay out precisely how you want certain funds to be spent. For example, it is possible you will pass away when a child is still young and has not bought a house yet. You can spell out in the trust that a certain percentage of the money should go toward the purchase of a home or anything else that will help your children have a fruitful life.
Creating an estate plan is not an easy endeavor, but it becomes a lot simpler when you have an estate planning attorney to assist you. Make sure you protect your property by contacting Horn & Johnsen SC to help you make your estate plan. With the right trust, you can rest easy.