When addressing the topic of estate planning and children, many times the idea of protecting your children who are minors is brought up. Estate planning can allow for your children to be well cared and provided for in the event a tragic accident claims the life of their parents. Estate planning is also a way for which these parents to ensure that their kids receive certain aspects of their assets after their death. Perhaps you are weighing the option of estate planning because you already have grown children who are on their own and raising their own families. In the event of your passing, even at an older age, you will likely want to have a say as to how your estate is divided among your adult children.
Perhaps you desire each of your children to feel as though they are fairly treated in the family, but even if this is the case, it is very common that you don't want them to receive an equal part of your estate after you die. Your reasoning behind this can be extensive, whether it is because one child is older, or another is untrustworthy with money, etc. having an estate plan determined can help make a clear picture of what will happen with your assets after death. Another possible reason is that one of your children is a successful entrepreneur, and the other one is an elementary school teacher. You may choose to provide more money for the teacher because they live on more humble means than your other children. Maybe one of your children gave a lot of time and efforts to help care for you during your last years, and you want to compensate them for that.
Whatever the case may be, estate planning is effective processes that will help parents leave their assets to their adult children. As a parent you may feel concerned that you are either not giving enough or giving too much to our children. Well, if you have a set amount in mind for your kids, consider giving the extras to another person or organization as charity. Also, you can establish trust funds that are specifically for your grandchildren, rather than letting your children decide for themselves what they want to do with the funds. There are many different ways for how you can decide to give your children their inheritances, even before your die.
Depending on how much money and asset value you have now determines your ability to give some away even now and experience the fulfillment of watching your loved ones receive the inheritance. Maybe your child is buying their first home, consider using their inheritance as an investment for them in the future. Perhaps your grandchild is off to college, your contribution could be life changing for their future.
Giving your adult children a lump sum is another option for you as parents, especially if your kids are trustworthy and responsible. There is a downside to this option, though. In the event that your children get a divorce or they are dealing with extensive amounts of debt, the money can be taken over by creditors or an ex-spouse. If the idea of this happening frightens you, a lump sum may not be the option for you.
Asset installments are a third option that you can look into further with your probate attorney. An installment means that your money will be given to your children in phases as decided by you and your spouse. For example, they may receive a small sum when you first die, and then larger sums every couple years down the road. By diving the funds it allows children the chance to potentially blow off their earnings the first time around and then settle down the road.
Lastly, establishing a trust can be a good way to protect your assets while at the same time providing funds for your children after you pass on. When using a trust fund, the assets are protected from creditors in the event that the beneficiary is struggling with debt. What many people may not consider is the fact that a trust fund is a smart way to protect your loved ones from losing government funding, particularly for those with specifically needs. As special needs individuals often receive special government funding, having the extra large amounts of money not in a trust fund could negatively after their ability to be funded.
How you leave your assets to your adult children is entirely your choice.