As we move into the Holiday season, it is a good time to to draft or reassess estate planning documents. Parents with minor children have important decisions to make. People generally never want to think about worst case situation of a simultaneous death of both parents, but having the discussion and drafting detailed documents is a necessity. I encourage my clients to strongly consider a living trust that provides for the care of their children and distribution of assets if necessary. In drafting a living trust, parents must consider who they would want to serve as the guardian of their children. Where would the kids live? Who would serve as the trustee of the assets? When should the children receive the assets, including life insurance proceeds? Most clients prefer their children not receive a large amount of money at a young age, such as 18 or 21. Many parents like to stagger the ages to receive the assets, such as 1/3 of the estate at age 21, 1/3 at age 25, and the remainder at age 30. But the benefit of living trusts is the flexibility available to suit your individual needs and desires.
If you are a parent with minor children, please give me a call to help you craft an estate plan that works best for your family.