Back to School Time: Lessons We Can Learn

Summer is winding down, and for many families, it’s back-to-school time once again. If you have young children, you’re probably already thinking about the long to-do list ahead. But this can also be an excellent time to consider how estate planning can affect your children—both as minors and future heirs.

Some lessons can be learned in retrospect, but when it comes to estate planning it’s far better to be prepared ahead of time with sound information and strategies. No one wants to think of a world where you are not there for your children, but it remains a real possibility that requires advance planning.

Here are a few key issues to consider:

Have you specifically provided for both financial care and parenting for your children?

Financial Care: The best strategy is to set up a trust where the majority of assets will be used to support your children until they are 18 years old. A named trustee would distribute trust funds according to terms and/or discretion that you specify.

Parenting: You can name a guardian in your trust (who may be different from the trustee) to provide consistent and ongoing parenting according to your wishes. This is especially important for those of you who are single parents and have sole custody.

Because of the distinct needs of minor children and unique family dynamics, these financial and parenting provisions should be crafted by an estate planning attorney who understands how to avoid undue delays or challenges.

Is life insurance a part of your estate plan?

It may seem like an unnecessary expense while you’re a young parent, but life insurance offers several advantages. For those under 40 with no major health issues, policies can be very affordable—and they can provide essential financial support if you don’t yet have other large assets.

You can also use life insurance creatively in your estate plan, such as naming your trust as the beneficiary. This helps avoid confusion over who receives the funds and ensures all assets are managed under one plan.

Learn what you need to do next by scheduling an appointment or attending one of our upcoming workshops.

To begin the estate planning process, call us for a consultation to help protect your children’s future. Or, learn more by attending one of our workshops. For a full schedule, visit www.estateplanningworkshop.org, or schedule your consultation today at (951) 414-3731.