Estate planning tips for families with children under 18 years of age

Published By Cpfinancial Planning, 24 May 2019

The main objective of estate planning is preserving estate properties for the future requirements of your loved ones. 

Parents can think about how to divide their property and distribute it among others or family members. However, it is necessary to think through various estate planning strategies especially when offering for minor children.

When you know how to develop an estate plan for children under 18 years of age, you can easily meet their requirements and also improve the value of the properties they receive.

Leaving properties to minor children

One of the major reasons for estate planning is leaving properties to minor children. It is important to distribute appropriately as these properties can develop a safe financial future and assist minors to meet their healthcare, educational and personal requirements. 

Minors will not obtain their family property until they become major or reach 18 years of age. However, parents can utilize estate planning vehicles like the revocable living trust that provide support to their kids.

It is very important in a situation when the parent passes away while the kid is minor. With the help of revocable trust, the child can get financial security they require from their parent’s property. 

It is possible to modify or terminate the revocable trust at any time when you are alive. It offers greater control and flexibility over the properties. It becomes irreversible at the period of incapacitation or death. The control of the property will be transmitted to a successor representative.

The properties in the trust are also safeguarded against probate process that is actually time-consuming and expensive. Developing trust for your children who are below 18 years of age helps them to obtain their welfares without any postponements.

Launching guardianship

Estate planning lets you develop a guardian when you have minor children. The guardian would offer the care and protection the child require when the parents die or become incapacitated.

It is possible to utilize the will to employ a guardian. If in case the will does not exist or there is no guardian, the court will force to hire a guardian.

It has chances to result in unwanted legal problems since family members do not approve guardian hired or fixed by the courts. 

Parents should find a trustee to take care of the assets that you leave for your minor children. As mentioned earlier, children will not get full access until they reach adulthood.  So, the conservator or trustee would protect the property that belongs to the children. 

Estate planning safeguards minor children’s future

By knowing the legal issues and rights, you can utilize estate planning to safeguard minor children. It ensures that they obtain the assets when you pass away. It is the most important step in developing the best estate plan for your kids.

By making use of legal resources, you can prevent various common problems that are usually faced by the family members.

When you work with estate planning attorney, they help you in sorting out the complexities associated with estate planning and leaving properties behind to minors.