An estate plan with a will or trust that is poorly developed can easily go up in smoke.
Time and thought is needed, says a story on statesmanjournal.com.
For children, consider a plan that does not pay them outright but provides them with guidance on how to spend their inheritance, for example, on college or retirement. Without such guidance, most inheritances are spent within 18 months.
For non-profits, consider setting up a charitable fund with as little as $25,000 that continues for generations. It can keep families in touch and together.
For blended family, make sure that you don’t unintentionally disinherit your spouse or children.You want to support your spouse and take care of your children. A simple will or trust may be inadequate.
For special needs, make sure an outright inheritance does not disqualify them for government benefits.
If you make a plan that gives different size inheritances to different children, explain why.
And be careful in appointing a trustee. Naming one child over another can lead to friction.
If you have questions about estate planning, feel free to call us for a consultation at (626) 696-3145.
