Most people tend to avoid thoughts about their own mortality. However, New York parents of young children should consider the possibility that an accident or illness might claim their lives before their children reach adulthood. Such thoughts might bring up many questions about wills, trusts and investment accounts, and the pros and cons of each option.
Some advisers maintain that using trusts to bequeath estates to children is the most efficient way in which to achieve the goal. Trusts can guarantee the availability of funds whether the children are still dependent or adults. If parents should die while their children are young, a trust can provide funds to finance their care, school and college educations as well as their entry into adulthood.
Parents can spell out the terms for how and when funds from the trust are to be made available for the children and their caretakers. By appointing an independent individual as a trustee, the asset disbursement can occur at the times or intervals specified in the terms of the trust. Trusts are powerful vehicles that can also protect estates from harsh penalties and taxes.
The prospect of dealing with the possibility of leaving young children behind, and making the necessary arrangements to deal with such situations might be daunting. However, a lawyer can provide advice, guidance and support. An experienced New York estate planning attorney can explain the pros and cons of trusts, wills and other options, and assist with the drafting of the documents that will ensure the financial well-being of the children.