It’s July and you know what that means: Independence Day with family and friends. We celebrate the freedom and independence of the United States on July 4th. So, what does that have to do with estate planning?
In the world of estate planning, we take advantage of available tools to celebrate and support the independence of young adults. Their newfound independence will be scary at times and coming together as a family to formulate an effective and appropriate plan helps alleviate the feelings of anxiety during this time of transition.
Power of Attorney Forms
We will keep this part brief because we recently wrote an entire article on the topic of Power of Attorney forms for young adults. These forms empower your adult children to go out on their own and pursue opportunities as life presents them while still having the safety blanket of home.
You retain access and some control over their medical and financial decisions while still allowing them to make decisions on their own. Eighteen-year-olds are going to make mistakes. They’re going to learn and grow from those mistakes. Allowing them to still make those mistakes while remaining close by to help is exactly what independence for your children should be about.
Setting Up Trusts for Your Children
Many people make the mistake of thinking that estate planning is only about what happens when you die. Quite the opposite is true as most estate planning tools have mechanisms that produce results while you are still alive.
A last will and testament goes into effect when you die. However, establishing a trust provides for beneficiaries more actively.
If you want to provide for your kids but have more control over how and when they receive money or assets, work with an estate planning attorney to establish a trust. A trust can be built to disperse those assets or money at a specific date or when a milestone is reached. Do you want your kids to receive money when they’re 18? Maybe again when they’re 21 or graduated college? A trust will be your best bet to make that happen.
Start the Conversation About Estate Planning
As your children explore their newfound independence in young adulthood, it’s important to have them thinking about the future. Do they want a family and kids? What does retirement look like?
Humans develop financial habits and beliefs at a very early age. Talking to your kids about estate planning allows them to do their own research and better prepare themselves for the future. At Solan, Park & Robello, we are proud to celebrate the independence of our country and its people. Contact us today when your family is ready to celebrate independence with a plan.
Solan, Park & Robello
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