from Gary Kershner
Watching your children grow and mature is both a challenging and awe-inspiring experience. The time and effort you put into being a parent is tremendous, and you know better than anyone how quickly your own needs can drop to the bottom of the priority list when you have growing children. Taking the time to meet with an Estate Planning Specialist is one of the top activities that fall through the cracks in the hustle and bustle of daily life. Most busy parents fail to realize that planning your estate is like creating an insurance policy. This is because strategic parenting decisions you made over the years can be undone in an instant if tragedy strikes and your childcare, financial, and health care wishes are not properly documented.
Now is the perfect time to sit down and update or review your estate plans to ensure all of the necessary provisions are in place to provide a secure future for your child. Planning for the possibility of a less than ideal future may seem daunting, and the thought of leaving children without a parent can feel downright depressing. Still, it is your responsibility as a parent to make sure your child is well provided for, even if something unforeseen should happen to you. You want to do what you can to prevent the misuse or abuse of assets you intended to last your children a very long time.
Create or Update a Revocable Living Trust
A revocable living trust is one of the best tools for parents to provide a protected inheritance for their young adult child without going through the time-consuming and expensive probate process. The trust document states who gets the property when the trust creator dies, what ages of inheritance are appropriate, and what kind of expenditures the trustee can make on behalf of your younger beneficiaries. The trustee is typically the person who creates the trust, and upon death, the successor trustee or trustees that you choose take over. Revocable living trusts can be adjusted or altered in response to life's changes, which makes it a flexible and versatile tool for providing for your child's future.
Buy or Update Life Insurance Policies
Revisit your life insurance coverage amounts routinely. Now may be a good time to buy more and to ensure that your trust is listed as the beneficiary.
When you update your insurance, make sure you review your estate planning documents as well to ensure they're up-to-date. If you don't have any estate planning documents, now is the time to put your affairs in order by creating or updating your:
• Revocable living trust,
• Health care powers of attorney,
• Financial powers of attorney,
• Living wills,
• Wills,
• Other important legal documents.
Prepare for your family's security by ensuring they're well cared for by your comprehensive estate plan.
Consider Trustees for Minor Children
Leaving financial resources and property to minor children is typically handled through a trust. To administer the trust, appoint a succession of individuals whom you know to be honest, responsible, and good with spending decisions. Talk with them before nominating them, and make sure they understand your wishes and plans in establishing the trust.
By planning for your children's future, you ensure they will be provided for no matter what happens to you. Work with a good estate planner to put your legal affairs in order.
What To Do Next
Estate planning can be deceptively complex. Not only do state and federal laws change, but every family situation is different. Seemingly small choices in how planning is done can have profound tax and family implications, and not having a plan in place can be worst of all.
Gary Kershner offers clients a No Hassle Trust and Estate Strategy Meeting, where they get experienced guidance on how to achieve total asset protection, long term security, and peace of mind for themselves and loved ones.
If I cannot meet your needs; you have my commitment that I'll point you in the right direction. Just call my office at 510-336-9500 to schedule.
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