As a parent, it’s hard to imagine life without your child, but that doesn’t mean that you can’t still be a significant part of their lives after your passing. It’s not an easy subject for parents to think about, but it’s a possibility. Without comprehensive estate planning, you could leave your children and dependents vulnerable. Have you considered who will care for your minor child, or manage their inheritance? What kind of upbringing do you want them to have? These questions may be difficult to answer, but with the right estate planning tools, you can rest assured that your loved ones are appropriately cared for and secure their future.
Guardianship
If you have a large family, it’s easy to assume everyone will come together to care for your children without conflict. It’s a comforting feeling, but if you really consider your options, is there someone you would trust more than others? Guardianship is an essential part of estate planning for anyone with minor children or adult dependents. A guardian will have the legal authority to make decisions on your child’s behalf, including their inheritance. Selecting the right guardian requires collaboration between you and your potential guardian. Setting up the legal framework for someone to take on guardianship after your passing or while incapacitated will prevent unnecessary familial disputes and keep your children safe.
If you are expecting to be temporarily incapacitated, it’s possible to set up a temporary guardianship or power of attorney to help manage your child’s needs. This would allow your child to be cared for by someone you trust, but you can still maintain full parental control. This is also a good option for leaving your child with someone you trust during a business trip, or a vacation.
Trusts
Trusts are an invaluable estate planning tool that can protect your assets for the benefit of your child. They have the flexibility to specify who has access to the funds, how they will be used, and when they will be distributed to your child. For example, a trust can be set up to pay for specific services for your child, like education, healthcare, and other expenses. It’s also possible to set up a sort of “nest egg” trust that can be activated after your child has reached adulthood to give them a leg-up in the world. You can set up a trust framework to disperse funds at specific ages to make sure they’re mature enough to manage their inheritance responsibly and protect them from potential exploitation.
Wills
A will is a basic legal document that everyone should have. It specifies how your assets are distributed after your passing. You can also use a will to nominate a guardian who will manage your child’s inheritance until they reach adulthood. This is still a great tool to have if you haven’t had the opportunity to set up a trust, or if resources for funding a trust are limited. However, a will is subject to probate, and although it’s not an easy matter to challenge a will, it’s still possible, which is why it’s important to make sure it stays up to date.
Everyone expects to live a long and happy life, but life has a way of sending us unexpected obstacles. Preparing for the worst does not mean that you are taking life for granted. Estate planning is an act of love and appreciation that can last generations. If you would like to discuss estate planning tools that could benefit you and your loved ones, our experienced and empathetic team of legal professionals is here to help. To schedule a consultation, fill out an online form, or call our office at (305) 285-0285.
Zamora, Hillman & Villavicencio
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