Estate planning with young children often revolves around trying to give them the support they need if you are not around to provide it yourself. For instance, you may pick a guardian to raise the kids and act essentially as a replacement parent.
Once they grow up, though, the focus shifts. Here are four questions you may want to ask when you have an adult child:
- Are they married? If your child is married, then you may want to consider the potential complications of leaving your estate to the couple. For instance, what happens to the inheritance if your child and his or her spouse decide to get divorced?
- Do you want to use a trust? A trust is a simple way to retain some control over the estate. For example, if you want your child to go to graduate school, the trust can dictate that the money has to be used for educational purposes.
- How responsible is your child? If you worry about the child’s financial responsibility, one potential solution is a trust that only pays out a specific amount every year. This way, it is impossible for your child to waste the entire inheritance in the first year after your passing.
- Do you have any grandchildren? If so, you may want to plan specific ways to leave money for them — like a college fund — rather than just leaving it to your own children.
These are just four questions, but they can help you get the process started. Make sure you understand what steps to take to create the perfect estate plan for your family. Contact an Estate Planning attorney at the Quinn Law Firm at 814-833-2222 for more information.