No matter if they’re adults or minors, established or dependent, children play a central role in estate planning decisions. That’s why it’s crucial for your advisor to understand your perspective on those relationships.
This is especially true if you’re the single parent of an underage child. In that case, you must carefully consider what your child’s life will look like if something were to happen to you. Would they live with a relative or ex-spouse? Would they have to leave their school and community? What kind of limitations would they have when accessing their inheritance?
One key way to address your child in your estate plan is by including a trust and a trustee. Should you pass away, the trust can accept funds from your estate, retirement plan, IRA and insurance settlement, as well as from any claim, judgment or settlement that may result from the cause of your death. Furthermore, having a trust in place gives any court a legitimate basis to determine your wishes and expectations for your child, including who you wish to carry out those wishes and who should remain an advocate and influence in your child’s life.
Although not all terms in a trust are enforceable, they can allow you to formalize your wishes and establish details about who you intend to care for your child and how the trust’s funds can be used. Together with your advisor and estate planning attorney, you can create a document that addresses a variety of these fundamental concerns.
To prepare yourself for these important planning conversations, be ready to discuss these and other topics with your team of professionals:
To begin addressing these questions and learn more about your trust options, contact your financial advisor.
Please note, changes in tax laws or regulations may occur at any time and could substantially impact your situation. While familiar with the tax provisions of the issues presented herein, Raymond James financial advisors are not qualified to render advice on tax or legal matters. You should discuss any tax or legal matters with the appropriate professional.
Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services offered through McGee Wealth Management, Inc. McGee Wealth Management, Inc. is not a registered broker/dealer, and is independent of Raymond James Financial Services.
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