Estate planning is going to involve inventorying your assets in anticipation of future distribution of the same to your loved ones. You must then decide on how you are going to get these assets from point A to point B. When you’re doing this you have to identify those who will be receiving inheritances and ideally choose the vehicles of asset transfer that are appropriate given the age and proclivities of these recipients.
Along these lines many people have to stop and take pause as they are considering how they will provide for minor children when they are planning for the future. There are two different levels to this. Parents of minor children are going to have to go forward in a precautionary manner under the assumption that it is possible that they will pass away prior to the children reaching adulthood.
This would entail naming a guardian who would care for the children in the event of the death of the parents. Life insurance would also be a key component, and the proceeds could be directed into a trust for the benefit of the children. One could also name a property guardian in his or her will, or select a custodian to handle the funds in behalf of the minor children under the Uniform Transfers to Minors Act.
In other cases older people such as grandparents or great-grandparents may want to provide for children with the knowledge that they will probably still be minors when these inheritances become available. These individuals often create trusts that include stipulations with regard to how money can be spent for the child’s well-being while he or she is still a minor. The trust agreement can go on to provide a framework for asset distribution after the child becomes an adult, and this can sometimes include incentives toward positive behavior such as educational achievement.
Paul A. Kraft, Estate Planning Attorney
Mr. Kraft assists clients primarily in the areas of estate planning and administration, Medicaid planning, federal and state taxation, real estate and corporate law, bringing the added perspective of an accounting background to his work.
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