Many Georgia families have an estate plan in place to provide guidance and support for current and future finances. Many also rely on trusts for specific estate planning goals. These goals can cover any number of things including protection of financial assets from tax liability, supporting charitable institutions and providing future security for a loved one.
When thinking about planning for your children's future, it is important to start early. You can never know what might be around life's next corner. Even young parents need a plan to make sure their kids are taken care of. Laying a solid foundation before your kids reach adolescence sets a good example and builds financially responsible future habits.
It is important to have thoughtful discussions with your kids about your estate plan. This basic financial education will help better outline the details of what has been set aside and the responsibility behind it. These discussions should be consistent and include your estate planning attorney and any other family advisors to best frame how the plan was designed to work for your beneficiaries.
Once you have a plan in place, it does not necessarily mean you're set for life. Mistakes in estate planning are not always easy to identify immediately. Also, an estate plan that looks good today may not be the best fit further down the road. To avoid costly mistakes it is crucial to keep your estate plan and trusts up to date to ensure proper revisions are made as life circumstances change.
Source: CNBC, "When $20 Million Is Too Much to Leave the Kids," Robert Frank, Oct. 19, 2012