Do you have to revise your property plan primarily based on the ages of your youngsters? – New York Property Planning Lawyer Weblog – Might 19, 2021
You may have met with an estate planning attorney early in your marriage. If children have recently entered your life, it is important to make sure that your estate plan includes several important details. This article lists just a few of the key considerations to keep in mind when looking to update your child’s inheritance plan.
# 1 – Address that would act as a guard
It is important that you consider who would look after your children when they were young, when you and your partner died or were disabled. If you haven’t taken these precautions, you will leave your child in a vulnerable position.
# 2 – Make sure that children from previous relationships are included
While you may have prepared estate planning documents in a previous relationship, make sure that your estate plan is adjusted to include all of the children affected by your estate. Many mixed families, including children from previous relationships, choose to set up separate trusts to ensure that necessary funds reach children from previous relationships.
# 3 – Consider creating a trust for special needs
If one or more of your children have a physical disability, a Trust in special needs can help raise funds for the future care of the child without government intervention. Special needs trusts are common among individuals who qualify for Medicaid or Medicaid Additional security income. The language of trust should state that the trust is for care beyond what the government provides. In creating a special needs trust, a trustee cannot provide assets directly to the beneficiaries. Instead, trustees sometimes use funds to purchase various goods or services that improve a beneficiary’s quality of life.
# 4 – Identify secondary beneficiaries for children
If you and your partner die at the same time, you may want your child to be named a secondary beneficiary. These designations put the children next in line between your primary beneficiaries in order to receive assets. When deciding who to appoint as beneficiaries for different accounts, keep in mind that children cannot benefit from life insurance until they are eighteen.
# 5 – Appoint someone with financial authority
As with a will, permanent financial powers do not initially appear to be directly tied to your children, but can be compromised in unforeseen ways. If you become incapacitated, understand that it is common practice to appoint various types of authority, including paying taxes, managing your accounts, and transferring property to a pre-established trust. Remember, permanent financial power of attorney depends on your assets to pay for daily expenses.
Talk to an experienced estate planning attorney
Your estate planning documents should reflect the various changes that are occurring in your life. Many people think it is a good idea to revise their estate planning documents every three to five years, especially if there have been significant changes to their estate. If you need the assistance of an estate planning attorney, please don’t hesitate to contact us Law firm Ettinger today.