How To Protect Your Child’s Inheritance

You’ve worked hard your entire life and are proud that you can leave an inheritance to your children. And setting up an estate plan can help ensure that what you leave behind will be used in the best way possible. This includes making sure the inheritance is protected against governmental agencies, over-taxation, creditors and more. A good estate plan will help protect your child’s inheritance.

Ways To Protect Your Child’s Inheritance

Every family situation is different, and there is no specific way to build an estate plan that will fit everyone. But speaking with an experienced estate planning attorney can help you build a plan that works best for you.

Some ways to protect your child’s inheritance are:

• A will – dying without a will (dying intestate) can leave your children in a battle with the courts regarding how to distribute your assets. A will can explain exactly what assets you wish to go to which children.
• A trust – establishing a trust means that your children can avoid probate court (and their fees and publicity). Choosing from various trusts gives you flexibility on how and when to distribute your assets. Some types of trust to look into are:
  • Special needs trust
  • Age trust
  • Sprinkling trust
• Insurance and retirement accounts – assign and update beneficiaries on life insurance and retirement accounts such as 401k or IRA. Having the correct beneficiary allows the money to go directly to the beneficiary and avoid probate court.
• Consider gifting assets – giving away assets while you are still alive is a way for you to see your children use and appreciate the money, car, house or whatever you leave them. Be careful, you want to make sure you don’t leave yourself unprotected in your elder years.

What Happens If You Don’t Have An Estate Plan

Dying without an estate plan runs the risk of reducing your child’s inheritance. You may want to leave specific items to each child. Or maybe you are close to your nephew and want them to have your car after you are gone. But without a will, a trust, or any estate plan, the courts will decide who to distribute your property.

Not having an estate plan also leaves your child’s inheritance open to creditors, over-taxation, and other people looking to cash in on your assets. Working with an experienced estate planning attorney can help ensure your final wishes concerning your assets are fulfilled.

DuPage and Cook County Estate Planning and Probate Attorneys

Contact the experienced estate planning attorneys at Estate and Probate Legal Group to discuss how to protect your child’s inheritance. Call us today at 630-864-5835.

AREAS WE SERVE: Cook, DuPage, Kane, Lake, and Will counties