If you think that the sole purpose of having estate plans in New Hampshire is to preserve your wealth so you can pass it down to your loved ones, think again. Estate planning is a very useful tool that you can use to protect your children and loved ones and improve their quality of life.
Here are some ways that carefully made estate plans can benefit your kids.
Protects their inheritance
Passing down assets and gifts to minor children is not as easy as gifting them to adult kids. If you pass away before your children turn 18 years old, their guardian will assume responsibility for their care and the courts will maintain their inheritances until they reach adulthood. Once your kids turn 18, the courts will release their gifts, minus guardianship and other expenses which can significantly reduce the amount they receive.
Your children may not be financially responsible when they receive their inheritances and foolishly squander them away. You can prevent this from happening by establishing trusts. With a trust, you can name a trustee to manage their inheritances, specify reasonable conditions for their use and protect them for your kids.
Provides for their special needs
You may have a child who has special needs and may currently receive or may need to receive benefits from the government in the future. By creating a supplemental trust, you can preserve your child’s eligibility to public and government assistance, provide for their lifelong care and prevent creditors from making claims against the estate.
Prevents unnecessary disputes
You may have family members who may not agree with your final wishes. They may seek to discredit you because they feel they deserve a share or all of the assets you decide to leave behind to your kids. By carefully crafting your estate plans so they include in detail what you want your children to receive and trusts to protect their inheritances from greedy and irresponsible relatives, you can ensure the distribution of your legacy according to your wishes.
Estate planning when there are children involved may seem complicated. However, with the right estate planning tools, strategies and careful consideration for your children’s future, you can protect their inheritances.