It is important to make sure that you have an estate plan in place even when you are a young adult and it would seem as though you have many decades before you. Though estate planning is often viewed as something that only senior citizens need to be concerned about, in a very real sense it is as important or even more important for people who are younger to consider what life would look like to their loved ones if they were to pass away suddenly and unexpectedly.
During our era most young families rely on two incomes to maintain their standard of living. You have to make sure that your family would be provided for should your income vanish, and this is typically achieved through the purchase of life-insurance.
If you are a single-parent or if both parents were to pass away together in an accident the children would not be able to handle life insurance proceeds earmarked for them as beneficiaries. Under the Uniform Transfers to Minors Act you could name a custodian in your will who would be empowered to administer these funds while the children are still minors. Another option would be to direct the insurance company proceeds into a trust that you create for the benefit of the children.
Older people who anticipate passing away while some of the people on their inheritance lists are still minors often create trusts for these individuals. You can be very detailed if you would like to with regard to how distributions from the trust will be made. You can also choose to include incentives that guide your young heirs toward positive and constructive behavior, ultimately leading to the full realization of their potential as individuals.
To gain a more comprehensive understanding of estate planning for minor children, simply take a moment to arrange for a consultation with a licensed legacy planning attorney.
- Effective Planning for Single Seniors - October 1, 2023
- Your Guide to Navigating the Labyrinth of Trusts - September 28, 2023
- Paving the Way For the Future: An Estate Planning Guide for Millennials - September 24, 2023
