Estate Planning for Young Families

     Starting with young families.   A POA would allow the spouse to handle financial matters.  A living will informs others of your end-of-life wishes.  A HIPPA form should be signed to get any medical information you might need on your spouse.  It is also best to establish a will to determine who will get custody of any kids that are left behind.  In your will you can go into more detail about safeguards on how your trustee can handle their inheritances and finances.

Estate Planning for Established Families

    As your children grow into adults and your wealth increases, it may be beneficial for you to establish a trust.  This will hold assets for children and grandchildren for when the parents pass on.  If one or more of the children have special circumstances that make leaving money to them risky, then it’s foolish not to set up a trust.  A child who has a difficult marriage, a spendthrift, one who is in bankruptcy, etc. could all inherit assets while keeping their inheritance safe with a living trust.

     Proper estate planning looks at a family situation during a worst-case scenario.  Leaving money to your kids is simple, but if they are to pass, you would probably want to leave it to the grandchildren.  If they are not old enough then they would need a trustee to handle their inheritance for them until they become an appropriate age to handle it themselves.

Estate Planning for Aging Families

     The onset of illness or old age could also be a reason for updating your estate planning.  Unlike a revocable trust, an asset protection trust can protect your assets from a Medicaid spend-down, ensuring you don’t go broke paying for long-term care.  

     Another consideration at this point is looking at beneficiary designations.  This would apply to IRA’s, 401ks, 403b’s and any pre-tax money.  It may make more sense to transfer assets at death to your children if transferring to your spouse would mess up any benefits they are planning for in the future. 

Act While You’re Healthy Enough to Make Changes 

    A crucial point to remember is that you make these changes while still mentally capable.  Also, you’ll need a 5-year cushion to protect your assets from long-term care costs and a Medicaid spend-down.

     You can best protect your family by keeping your estate plan updated.  Please reach out to your local elder law attorney to find out how you can better protect yourself.