What updates should I make to my estate plan when my child leaves for college?
When your child lived at home, a proper estate plan would have designated guardians to care for your child should you be unable to. Now that your child is older, updating your estate plan to account for the next stage of life is in order. An experienced estate planning attorney will be able to help you decide whether you need to create a trust to protect your child’s inheritance from third parties, and whether to consider certain specialized types of estate planning..
First, we should discuss the importance of trust planning. Trusts may be the answer to many of the concerns you have at this point in your child’s life. Will your child’s creditors be able to access their inheritance? Will your child be mature enough to manage an inheritance? Is an outright financial gift to your child advisable, or are there other more appropriate means of disbursing your assets? Will your child be financially supported until he or she becomes self-supporting? A trust attempts to solve these problems. An estate plan which includes a trust can benefit your child because the trust can be customized to suit your needs. Leaving your inheritance to a trust which then safeguards your child’s inheritance from creditors and your child’s youth is something you cannot easily do with a will alone.
The second important consideration at this time is how to plan for your child's estate. You may consider the unfortunate possibility that your child could become incapacitated and unable to make decisions, whether those decisions be health-related or otherwise. An important step you can take to plan for this possibility is to have your child execute a power of attorney. A power of attorney can be used to allow your child to dictate who should make what kinds of healthcare decisions on his or her behalf in case of an incapacitating illness or injury. A power of attorney can also be used to dictate who will make financial decisions in such situations.
If you are considering altering your own estate plan or starting one for your child as they leave the nest, call the experienced attorneys at the Las Vegas, Nevada Stone Law Offices at 877-800-3424