5 Things You Can Do Today to Protect Your Child’s Future

For many people, protecting their children’s future is a big part of why they are engaging in estate planning. However, you may be unsure of the best methods to use to protect your children best and provide for them for years to come. Is a will the best choice? What about a trust? The short answer is that it depends on your unique situation and overall goals. You can use some of the information below to start planning.

1.   Consider long-term gift planning.

Leaving an inheritance to a child is a wonderful gift. However, it can come with some unintended consequences. Thankfully, Florida does not have an inheritance tax, but leaving assets to a child could result in other issues. For example, it may affect things like Social Security Disability benefits or other state-funded welfare programs.

To avoid some of these issues, and to avoid estate taxes, you may want to consider providing gifts to loved ones in the years before your passing. As of 2018, you can gift others funds up to $15,000 without running afoul of federal gift taxes.

2.   Manage expectations well in advance.

Some adult children deliberately make financial decisions with the expectation that they will be getting a large inheritance from their parents. While this type of preparation may not be a problem if that is your plan, but if you are leaving only a portion of your wealth to your children and doing something else with the remainder, it might be a good idea to have a discussion with your children before they are shocked by the reading of your will.

3.   Divide up property yourself.

You can leave an inheritance to your children in several ways. One of those is by designating just one of your children on something like a life insurance policy and then trusting that child to divide up your property. Although this may seem like a simpler solution, it’s a good idea to avoid this type of scheme. Putting that responsibility on one child can be daunting, and that child is under no real obligation to share with their siblings once they have the money. The same can be said about any other friend or family member. If you want to divide out property, do it yourself through your will, develop a trust with specific instructions, or name several beneficiaries on things like life insurance.

4.   Create a power of attorney.

A general power of attorney is a helpful document for someone who becomes incapacitated. This document allows someone else to make decisions for you should you become unable to do so yourself. For those with minor children or children with disabilities, this document is a must. In many circumstances, it can put someone else in charge of providing for your family if you are no longer able to do so.

5.   Don’t wait to start estate planning.

One of the worst things you can do for your children is having no estate plan in place at all. Don’t make this mistake. It is tempting just to put things off, but delaying until it is too late will give you no means to protect your children’s future. Call the Legacy Planning Law Group at 904-880-5554 today to schedule an appointment to get your estate plan started.

Written by Legacy Planning Law Group

Legacy Planning Law Group is dedicated to working with individuals and families to help protect the assets they have built throughout their life, and make everything simpler for families who have lost a loved one. We help thoughtful people achieve the peace of mind that comes with planning their personal legacy and passing on family harmony.

Written by Legacy Planning Law Group

Legacy Planning Law Group is dedicated to working with individuals and families to help protect the assets they have built throughout their life, and make everything simpler for families who have lost a loved one. We help thoughtful people achieve the peace of mind that comes with planning their personal legacy and passing on family harmony.