In an article published in the April issue of Washington Parent, Paul Riekhof discusses how parents can ensure their children are provided for in the event of an untimely death or incapacity.
Riekhof explains the process of selecting guardians to take on the parental role for children if their parents pass away. Guardians will make the living arrangements as well as the health and education decisions for the children. A guardian will also help children manage any money they make through work, receive as an inheritance, or acquire from other means.
Diving into the financial aspect of estate planning, Riekhof explains that estate planning is crucial for parents to ensure their financial assets are managed and protected for the benefit of their children. He discusses the various types of trusts and the importance of creating the right trust to control asset distribution, including protecting against remarriage or creditors, and safeguarding the family’s future.
Riekhof notes that parents of young children should use trusts to ensure their assets are used responsibly until their children are old enough to manage them independently. He also discusses certain circumstances that might prompt a parent to take a different approach, such as wealth that raises concerns about generational estate taxation, children with incapacitating conditions, or concerns with how children are living their lives. Each of these situations may call for a different tactic.
Riekhof concludes by explaining that making a thoughtful and comprehensive estate plan is one of the greatest gifts parents can give to their children.
Read the full article “Estate Planning for Parents: What You Need to Do to Protect Your Family’s Future.” (PDF)
