This week we conclude our series on estate planning for new parents by focusing on the challenges faced by some children and common estate planning protection tactics to prepare children for those challenges.
As we emphasized in our last post, there are several important documents to be established and beneficiary designations on accounts to be reviewed and changed when expecting the birth or adoption of a child. The planning process does not stop there, however, as each child will soon display a unique set of personality characteristics. While talents will develop, there will also be challenges that some children will encounter in their lifetime.
Common struggles for many adults often start to surface during an individual’s teens and early twenties. Special needs, mental illness, drug or alcohol addiction, and children with spendthrift issues all need to be delicately provided for under a parent’s estate plan.
By leaving a child’s inheritance in a properly structured trust and appointing a reliable person or professional to serve as your child’s trustee, it is possible to protect your child and future generations.
Whatever the future holds for your children, establishing a well-developed estate plan will give you the security in knowing that when you are gone your children will be protected and will have the resources to lead them on the path toward success.