As people in New York attempt to prepare for the future, one important area involves creating a plan for their kids to inherit their assets. Typical concerns when addressing assets in wills or trusts include the ages of the kids, their maturity levels, the size of a potential inheritance and divorce risk. Several factors are important to consider in the design of an inheritance.
First, it is important to consider an amount of assets that is most appropriate to leave the kids. Too high of an inheritance amount may actually be detrimental to the children’s productivity and ambition. In addition, it is suggested that people use lifetime protective trusts and then designate their children to become trustees at predetermined ages; until then, third parties should act as trustees. Postponing control means a child is not as likely to make an immature mistake.
It is also wise to address the weaknesses of one’s children when engaging in estate planning. Parents typically want to treat all of their children the same in their estate plan, but certain circumstances might require that they all not be treated equally. For instance, one child might have married an extremely wealthy individual. Perhaps another child plays an active role in the family’s business, while another one is on the verge of declaring bankruptcy.
Creating wills or setting up trusts in New York can be a complicated process, especially for those who have assets that are high in value and have children facing a wide range of circumstances. Fortunately, proper legal guidance may help to make this process easier and more efficient. Through well-thought-out estate planning, people can confidently ensure that when they die, their children will end up receiving the assets intended specifically for them.
Source: azcentral.com, “5 key factors in designing an inheritance plan“, Louis A. Silverman, Jan. 12, 2016