Every parent should have a trust to provide for the financial well-being of their children in case some tragedy should make it necessary for someone else to care for their children. A trust can be funded while the parent is still alive, or can be established after the parent has died. Often a trust established upon the death of a parent is funded by life insurance proceeds and other estate assets.
Will the Guardian Need Funds?
In deciding how much to put in a trust, consider who will care for your children and whether they are financially secure. For example, if your parents are going to care for your children and they are financially secure, then you might not need to put as much money in a trust as you would if the guardian is not financially secure.
Diversify your Assets
There are many different ways to provide for the financial future of your children. One option is to put all of the estate assets in a trust. Another option is to start investing in a 529 College Savings Plan or to purchase stocks and annuities for your children’s future. The 529 will continue to grow and will provide money specifically for higher education costs for your children. The greatest benefit to putting money in different assets for your children is diversifying the assets so a down turn in the market won’t wipe out all the assets at once.
Getting Legal Help
An experienced Estate Planning Attorney can help you create the best asset preservation mix to provide for your children’s financial future. Have questions or want to speak directly with any attorney? Contact us online or call our office at 832.510.2900 to schedule a complimentary consultation with a Bailey Law Firm attorney.