Legacy Planning, Wealth Planning and Planning for Children
Legacy and Wealth Planning is not something we do for ourselves; it is one of the most loving things you can do for your family. Unfortunately, most of us do not realize it until it is too late. As moms, our lives revolve around our family; we are planners, nurturers and caregivers. As a mom, no matter what, my daughter comes first. Her future, her happiness, her safety are all priorities in my life.
As women, it is in our nature to take care of everyone else and then, if there is a little time left, ourselves. Why is it then that we fall short on the planning for our family’s future after we are gone?
Maybe it is because thinking about our own mortality is scary. The thought that we might pass away before our children is heartbreaking. It is often easier to tackle each day just like the day before and do what we do best, take care of life in the present moment.
We need to work together to plan for the unexpected. You have several important decisions to make to protect you, your children and your financial health. Don’t let someone else be the voice for your children in the future.
Appointing a Guardian
As a parent, we are the voice for our children, because until they are adults, they do not have a voice. Without our voice being heard through planning now and appointing guardians now, you will have no control over what happens to your children when you are gone; your children will have no voice.
The North Carolina Court will choose someone who may be different from the person whom you may have selected. Your Last Will and Testament (or Trust) can specify who you name to raise your children.
There are many factors to consider when choosing a personal guardian:
- Is the prospective guardian old enough?
- Is the prospective guardian physically able to handle the job?
- Does he or she have the time?
- Does he or she have kids the age close to that of your children?
- Can you provide enough assets to raise the children? If not, can your prospective guardian afford to bring them up?
- Would your child have to move?
Don’t let the Courts answer these questions for you…answer them today!
Children’s Trusts
Have you thought about what would happen with the $1,000,000 life insurance policy that named your minor children as the beneficiaries? Well, the North Carolina Court will most likely have a court proceeding to appoint a guardian and put the money into a trust which contains terms that the State of North Carolina says applies. Without planning now and creating the appropriate trusts today, you will have no control over the financial care of your children.
Planning how your inheritance will be passed on to your children so your assets are used as you wish can be determined by you. A Children’s Trust can be used to insure your estate is used for your children’s education and support until they are able to properly manage money.
Provisions can be written into the trust that requires mandatory periodic distributions or that give the trustee discretion over distributions. The trust could continue until the child finishes college, gets married, produces grandchildren or attains a certain age such as 25, 35, etc.
You have the power today to plan for your children’s tomorrow after you have passed away.
