When it comes to securing your family’s future, estate planning is essential—especially if you have minor children or a loved one with special needs. Without a well-structured estate plan, you risk leaving crucial decisions in the hands of the courts, which may not align with your wishes.

For families in Las Vegas, NV, estate planning ensures that your children will be cared for by the right guardians, your assets will be managed appropriately, and any child with special needs will have financial protection without jeopardizing government benefits. Here’s why having a solid estate plan is one of the most important steps you can take as a parent.

Guardianship: Who Will Care for Your Child?

If you pass away or become incapacitated without naming a guardian for your minor children, the court will make the decision on your behalf. While they may consider close relatives, there is no guarantee that their choice aligns with what you would have wanted.

Choosing the Right Guardian

When selecting a guardian, consider:

• Familiarity with Your Child: Will your child recognize this person as family, or will they be moving in with someone they barely know? Building a relationship between your child and the chosen guardian now can make a significant difference.
• Age and Health of the Guardian: While grandparents may be loving caregivers, they may not have the energy to raise a young child into adulthood.
• Parenting Values and Lifestyle: Ideally, the guardian should share your parenting style and moral values, ensuring continuity in your child’s upbringing.
• Financial Stability: Guardianship can be a financial burden, so it’s important to consider whether the individual you select has the means to care for your child.

Because life changes, so can your choice of guardian. Regularly reviewing and updating your estate plan ensures your selected guardian remains the best fit.

Trusts vs. Wills: Protecting Your Child’s Inheritance

A common misconception is that a will alone is enough to protect your child’s future. However, in Las Vegas, NV, estate planning is most effective when a trust is involved, particularly when minors or individuals with special needs are beneficiaries.

Why a Trust Is Better for Minors

If a minor child inherits assets through a will, they typically gain full control at age 18. However, few young adults have the financial experience to manage large sums of money. A trust allows you to:

• Stagger distributions over time (e.g., a portion at 25, more at 30).
• Appoint a trustee to oversee financial decisions until your child is mature enough to manage funds responsibly.
• Ensure assets are used for essentials like education, healthcare, and housing.

Assigning a Trustee

This person manages the trust assets for the children’s benefit. They need to be financially responsible people who can manage the funds for the children. The trustee can be a family member but should not be the same person chosen as the guardian. Keeping these roles separate ensures that the guardian will not misuse funds. Another option is to hire a professional to serve as the trustee. Professional trustees, including banks or financial advisors, usually charge a percentage of assets. In some cases, estate planning attorneys serve as trustees for minor children.

Special Needs Trusts: Essential for Children with Disabilities

If your child has special needs, a standard inheritance could disqualify them from government benefits like Medicaid or Supplemental Security Income (SSI). A special needs trust (SNT) protects their financial future while maintaining eligibility for essential assistance.

• The trustee manages funds and ensures they are used for your child’s benefit.
• Assets in the trust do not count as personal resources, preventing disqualification from government programs.
• You control how funds are allocated, ensuring lifetime support.

Creating a special needs trust requires careful planning with an experienced estate planning attorney in Las Vegas, NV.

Avoiding Probate: Keeping Your Estate Private and Efficient

Without a trust, your estate will likely go through probate, a court-supervised process that can be:

• Time-consuming: It can take months or even years for heirs to receive their inheritance.
• Costly: Legal fees and court costs can significantly reduce the assets passed to your children.
• Public: Probate records are public, meaning anyone can access details about your estate.

Establishing a revocable living trust allows your estate to bypass probate, ensuring a faster, private, and more cost-effective transfer of assets to your children.

Create a Comprehensive Estate Plan in Las Vegas to Protect Your Minor Children

Every parent’s greatest fear is leaving their child without a clear plan for the future. By working with a skilled Las Vegas, NV estate planning attorney, you can create a strategy that ensures:

• Your child will be cared for by the right guardian.
• Their inheritance is protected and managed wisely.
• A child with special needs continues to receive essential benefits.
• Your estate avoids costly probate proceedings.

At Stone, Bybee, and Associates, we craft estate plans that offer peace of mind. Request a consultation with our Las Vegas team today to start planning for your family’s future.

References: Forbes (Jan 29, 2020) “10 Tips For Choosing A Guardian For Your Minor Child” and NerdWallet (Jan 26, 2024) “Guardianship: What a Legal Guardian Is, How It Works”