Although it is tough to think of your own mortality, if you have small children under the age of eighteen then it is something that you should consider for their own protection and well being. The estate plan that you create when you are still alive will greatly affect and form the course of their whole lives.
A huge part of creating an estate plan for a minor kid is choosing what age the child will get their inheritance. This is a significant advantage of really making an estate plan instead of not having one and dying intestate.
Deciding what age a potential successor will get their inheritance is a vital part of an estate prepare for that kid. If you have a small child and no will or a will that has no age restrictions that kid will receive their entire inheritance at age eighteen in a lot of states. Eighteen is not the most economically accountable age. There have been ample heartbreaking tales of moms and dads that have failed to prepare for their own death and a kid received all of their inheritance at age eighteen and investing all of it by age nineteen. Having a will or living trust permits you to set the age the child will get your assets.
Most parents with small children are comfy at setting the inheritance age at twenty-one when making their will. This age seems to work well as the child is more mature than eighteen, but at an age where they is more of a requirement for education and living expenditures. There are still economically reckless twenty-one years of age so an age of twenty-five or thirty would also make good sense sometimes. There is also an alternative to break up the inheritance that the child into various installments such as a 3rd at age 21, a 3rd at age 25, and a 3rd at age 30. This can be an excellent concept to make sure that the kid does not blow all the cash at the same time and can learn a lesson from blowing a very first installment. Choosing a suitable age is a judgment that each moms and dad or other providing an inheritance to a minor kid must make. The choice to delay the time the child would get your properties might allow them to attend college and get a head start on life that would not exist if they spend everything at the same time.