Although it is challenging to think of your own death, if you have small children under the age of eighteen then it is something that you need to consider for their own security and well being. The estate plan that you come up with when you are still alive will significantly affect and shape the course of their entire lives.
A huge part of developing an estate plan for a minor child is choosing what age the child will receive their inheritance. This is a major advantage of really making an estate plan instead of not having one and passing away intestate.
Deciding what age a potential beneficiary will receive their inheritance is a vital part of an estate plan for that kid. If you have a minor kid and no will or a will that has no age constraints that kid will get their entire inheritance at age eighteen in many states. Eighteen is not the most financially accountable age. There have been more than sufficient heartbreaking tales of moms and dads that have failed to prepare for their own death and a child received all of their inheritance at age eighteen and spending everything by age nineteen. Having a will or living trust enables you to set the age the child will receive your assets.
Most moms and dads with minor kids are comfortable at setting the inheritance age at twenty-one when making their will. This age seems to work well as the kid is more fully grown than eighteen, however at an age where they is more of a requirement for education and living expenses. There are still financially careless twenty-one years of age so an age of twenty-five or thirty would likewise make good sense in some cases. There is also a choice to split up the inheritance that the kid into various installments such as a third at age 21, a third at age 25, and a third at age 30. This can be an excellent idea to make certain that the child does not blow all the cash simultaneously and can learn a lesson from blowing a first installment. Deciding an appropriate age is a judgment that each parent or other giving an inheritance to a small kid need to make. The choice to postpone the time the child would get your properties could allow them to attend college and get a head start on life that would not be present if they spend it all at once.