Ensuring your clients' estate plans are thorough is crucial, especially if they have minor children under 18.
🔹 Choose an Appropriate Preservation Age: Typically, this is 21 or 25 years.
🔹 Specify Benefits for Children: The Will can state that until they reach the
preservation age, they are entitled to payments for their “education, maintenance, and advancement.”
🔹 Distribution Timing: Decide whether each child receives their share when they reach their preservation age or when the youngest does.
🔹 Special Needs Consideration: Ensure the plan addresses any vulnerabilities or special needs the children might have.
🔹 Appoint a Guardian: Identify who will look after the children if the client passes away unexpectedly.
🔹 Role of Guardian and Executor: Consider whether the Guardian should also be an executor or if these roles should be separate.
🔹 Guardian’s Benefits: Determine if the Guardian is allowed any benefit or loan from the estate to look after the children, such as funds to extend their home.
🔹 Statement of Wishes: Create a document guiding the Guardian and executor on raising the children and using trust funds, covering aspects like:
Living arrangements
School choices
Use of funds for private education and travel
Religious upbringing
Access to relatives and family members
Maintenance, education, and advancement funds
Action Items:
Appointment of a Guardian
Determine an appropriate preservation age for inheritance
Ensuring your clients' estate plans consider these factors provides peace of mind that their children will be well-cared for, no matter what.
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