Plenty of adults don’t like thinking about their estate plans. Adult children don’t especially enjoy hearing their parents talking about their estate plans. And, it’s assumed that most minor children aren’t capable of grasping the nuances of estate planning. Remember back to middle school: did you know how much your parents had in their savings accounts?
Despite these social mores, estate planning is absolutely something to discuss with your family members — including your school-aged children. Estate planning is more than just filling out your Last Will and Testament, a power of attorney or two, and some trusts. Your family needs to be involved every step of the way.
The Family Business
One of the biggest sources of pride that parents can hand off to their children is their small businesses. The best way for your children to prepare to take the reins from you one day is to get them familiarized with the operation. One thing your children might not get at school is basic information about being a successful entrepreneur; the onus is on you to get them ready. A thorough and precise approach to grooming your successor at work is the best way to ensure you can pass on your hard-earned success to future generations. Plus, there are tax benefits for hiring family members to work at your small business.
You Can Save Your Kids Money Through Smart Estate Planning
Even with a Last Will and Testament, most of your assets will have to pass through probate court. While probate court isn’t the nightmare scenario people have made it out to be, it’s still useful to take measures to prevent the time and money your loved ones will have to spend there. You can do this by setting up trusts and funding them with your largest assets in them (the contents of trusts do not go through probate court). This will not only get your loved ones their inheritances faster — it will avoid having part of your estate being used to fund proceedings in probate court.
Don’t Forget to Update Your Plan
Your estate planning forms are living documents. As your children graduate high school and college, buy houses, and start their own families, your estate plan will also need to evolve. There are a few situations that warrant a second look at estate plans, like:
- Marriage or divorce
- Birth of a child or grandchild
- Receiving, giving away, or selling a large asset
Communication is Key
One of the most important things you can do to make sure your children are prepared to receive their inheritances is to educate them. Tell them what to expect, how you’d like them to use their inheritances, and the general importance of maintaining your precious assets. McMahon Law Group would be more than happy to help with your estate planning matters. Get in touch with our firm today to take control of your future.
McMahon Law Group
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