How important is it to you to leave a financial inheritance for your children?
How important is it to you to leave a financial inheritance for your children?
What's the Importance of Leaving a Financial Inheritance For Your Kids?
Leaving a financial inheritance for your kids is not something to take lightly. A large percentage of parents pass away without leaving a financial legacy to their children. However, there are some things you can do to ensure that your kids are left in a healthy financial state when you're gone.
Deciding the kind of inheritance
First, you need to decide what kind of inheritance you want to leave. You can leave everything to the kids, leave them a percentage of your estate, or split up your estate amongst them. You should also consider whether your children are already in college and how much your inheritance will affect their college financial aid. Leaving your kids an inheritance can also affect your estate tax bill.
Trust
You can also take your inheritance one step further by putting it in a trust. A trust allows you to specify who will receive your assets and how they will be used. A trust also allows you to avoid court-appointed guardianship. In addition, a trust can also protect your children's assets from creditors and spouses. This means that you can leave your children the best of everything, but at the same time prevent them from spending your assets recklessly.
Living trust
The best way to do this is to create a living trust, which will act as a guardian and a manager of your assets. A living trust also allows you to name someone to make financial decisions on your behalf, as well as name a guardian for your minor children. The benefits of a trust include protecting your assets, allowing your kids to receive the inheritance you've worked so hard for, and saving you legal fees.
Managing assets
Another way to leave a financial inheritance for your kids is to designate a smart device to manage your assets for you. In this way, you can avoid a costly and time-consumingconsuming probate process. You can also designate a specific age at which your children should receive their inheritance. You may also want to consider leaving a bit of jewelry or other expensive items to the children in question. A living trust can also be used to protect your children's inheritance from creditors.
Documents and records
Lastly, the best way to ensure that your children receive their inheritances is to make them aware of the appropriate documents and records. This can be as simple as leaving a notebook in their room, or as involved as introducing your children to an advisory team of professionals. There are many factors to consider when planning for the future, and an estate planning attorney can help you devise a strategy that's right for you and your family.
Plan
The best way to ensure that your children receive the best possible inheritance is to create a plan and keep it updated. Leaving a financial inheritance for your kids can be a challenge, but the reward of having your kids in a better financial position after you're gone will make it all worth it. The best way to keep the plan moving forward is to ensure that your children know exactly what you want.
If you have questions, you can get a free consultation with the Best Estate Lawyers.
Parklin Law - Estate Planning Lawyer
5772 W 8030 S, # N206
West Jordan UT 84081
(801) 618-0699
