Why do parents have different estate planning needs?

On Behalf of | Jul 8, 2022 | Estate Planning |

Estate planning can become complicated as you get older, but once you have children, it becomes even more complicated. Why? Because you add more heirs, but heirs for who you are completely responsible (care and welfare).

Additional heirs

The first thing that needs to be done with your Cummings, Georgia, estate plan is to add your new heir, your child. This may mean significant changes to your already designated heirs and bequests, especially if you set up large bequests to charities.

Trust options

As part of thinking about what you want your children to inherit, think about how as well. And, to maximize the transfers, while reducing taxes and maintaining control, even after you pass, generally, the most effective estate planning instrument is a Cummings, Georgia, trust.

You can set up a family trust where everything, including bank accounts, brokerage accounts, life insurance, etc., flows into the trust. Then, the trust will be administered by a third-party trustee for the benefit of your child in a way that you approve and designate prior to your death or incapacity. That trustee can be the guardian, lawyer, bank or whomever you want to be responsible for the trust assets.

Wait, what is a guardian?

A guardian is a person whom you and your spouse designate to take over parental duties when you both pass or become incapacitated. As a guardian, they will have all the rights and responsibilities of a Georgia parent.

Picking a guardian

Think about those people that you trust with your child, who have the same parenting philosophy as you and who share similar religious views. Then talk with them. Make sure they agree before designating them as a guardian. And, because life happens, you should choose more than one guardian. In fact, you should have a list. This will ensure that your child never enters the Georgia foster care system.