Parents in Massachusetts that are taking care of small children are likely already thinking about their future. It is an unfortunate reality, however, that a parent may not always be around to help their child. Therefore, it could be beneficial for families with small children to create an estate plan that would prepare for situations in which one or both parents has passed away. Doing this could provide some stability in a child’s life in the unfortunate event that a parent dies.
An estate planning strategy that some advisers use considers possible future situations in which a child would be in need of financial help. For example, an estate plan could contain a course of action for what would happen if a child needed major surgery at some point. However, a more realistic and beneficial approach may be to plan for specific goals that the child is planned to achieve. Taking this strategy, an estate plan would examine what the child would need when he or she goes to college or gets married. If you have very specific objectives in mind for your children, it may help to create an estate plan that considers goals in 5-year increments.
Another facet of the plan could involve terms for when the children are grown and control their own assets. Parents that set up trusts will allow their own assets to be protected while still being able to give much of their estate to their children.
Massachusetts parents that make these plans early may have peace of mind knowing that their spouse and children can be provided for should anything happen to them. For new parents, this might hopefully ease some of the stress that comes with caring for small children. Estate plans can also be reworked as the years go by, so the earlier a plan is created, the easier it will be to alter your objectives in the future.
Source: wsj.com, “Voices: Mark Powell, on Helping Young Parents Begin an Estate Plan” Mark Powell, Jan. 06, 2014
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