Estate Planning for Parents

When your kids are young

Most people with children under the age of 18 know they should have a will, at the very least to name a guardian for their children. A guardian is the person who will care for your children if you cannot.

Lesser known, but just as important, a will can also set aside money for your children until they are older (called a “testamentary trust”) in the event of your death. While a court can also do this even if you don’t have a will, including a trust in your will has many benefits: 1) letting YOU decide when and how your child will inherit money (as opposed to relying on default ages and rules in our state law), 2) saving money by having a trust set up without court supervision, and 3) deciding who will manage the money (often this is the same person as the guardian, but you can decide).

 

When your kids are adults

Most people agree that turning 18 doesn’t suddenly make your kid a mature adult overnight. Even if your child has outgrown the need for a legal guardian, the majority of young adults benefit from delayed inheritance. You know your children best. Having an estate plan lets YOU decide when they should inherit, and lets you decide who will manage the money for them in the meantime.

 

This information is for educational purposes only. It is based on Minnesota law and may not be true in other states. See the website Terms of Use.