Estate Planning Mistake #5Thinking That Children – Minors and Adults – Don’t Need Inheritance Protection
If you have children it is very likely that you want to help ease their passage in life. You cannot protect them from all of life’s potholes (which may be a good thing), but you can lend your emotional and financial support in many circumstances.
You probably helped your children buy their first car and played a role in funding their college years. You also want to make sure that when you die some or all of your assets go to your children. If you have already created a trust that names your children as beneficiaries, you have completed an important step…but that’s not all.
What will happen if you should pass away tomorrow? Could your children handle a large windfall of money? It is possible that your child might not yet have the maturity to spend their inheritance wisely. There are other dangers lurking that you might not be aware of. What happens if your child receives their inheritance, then comingles it in a shared account with their spouse, and then gets divorced? Children could also lose a significant amount of their inheritance if they are involved in a bankruptcy or are sued.
There are ways that you can protect your children from themselves – at least when it comes to their inheritance of your money. In the fifth video in my series, 12 Common Estate Planning Mistakes and How to Avoid Them, I review this issue and provide you with some solutions to help ensure your children can really benefit from their inheritance.
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