It is hard to think about your own death, if you have small kids under the age of eighteen then it is something that you need to think about for their own security and well being. The estate plan that you create when you are still alive will significantly impact and form the course of their entire lives.
A huge part of creating an estate plan for a minor kid is choosing what age the child will get their inheritance. This is a significant advantage of actually making an estate plan rather than not having one and dying intestate.
Deciding what age a potential heir will receive their inheritance is a fundamental part of an estate prepare for that kid. If you have a minor kid and no will or a will that has no age limitations that kid will get their whole inheritance at age eighteen in a lot of states. Eighteen is not the most financially responsible age. There have actually been ample heartbreaking tales of parents that have failed to prepare for their own death and a child got all of their inheritance at age eighteen and investing it all by age nineteen. Having a will or living trust permits you to set the age the child will get your assets.
Most moms and dads with small kids are comfortable at setting the inheritance age at twenty-one when making their will. This age appears to work well as the kid is more mature than eighteen, but at an age where they is more of a requirement for education and living expenses. There are still financially irresponsible twenty-one years of age so an age of twenty-five or thirty would likewise make good sense in many cases. There is also an option to break up the inheritance that the kid into different installments such as a 3rd at age 21, a 3rd at age 25, and a third at age 30. This can be a great concept to make sure that the child does not blow all the cash at once and can discover a lesson from blowing a first installation. Deciding an appropriate age is a judgment that each parent or other giving an inheritance to a small kid should make. The decision to delay the time the child would receive your possessions could allow them to participate in college and get a head start on life that would not exist if they spend everything at as soon as.