Protect Your Children's Inheritance with a Proper Estate Plan
3 Ways Your Estate Plan Could Cost Your Children MoneySetting up an estate plan is not always the most enjoyable activity, but it’s worth the effort because of who you’re setting it up for — often your children. With an estate plan, you can give your children a gift, and you want to leave them as many of your assets as possible.
However, what if your estate plan is set up so that your children may receive only a portion of what you intend — or the estate might even end up costing them money? We will discuss mistakes that can lead to these unfortunate situations, and how to avoid them. |
We're Here to Help.OR
|
Probate Court Costs
Disputes over your estate or neglecting to set up an estate plan that includes a will or trust can result in the need for your assets to go through probate court for distribution. Going to court to address your estate can cost your children money in the following ways:
- Legal fees. If your estate needs to go to probate court, your children may need to hire lawyers to advocate for appropriate distribution of your assets. These costs will have to be paid up front, and there is no guarantee they will receive what you would have intended.
- Improper distribution. The distribution of your assets may be ultimately determined by the courts. As a result, you and your children have no real control over what they will receive.
Poorly-Managed Trusts
Trusts are multifaceted and can cost your children money if they are improperly set up in regard to the following areas: management, recipients and special needs eligibility.
- Management. When your children are young, you will likely name an individual to manage your funds. This could be a spouse or another trusted adult. Be sure the management is in the right hands as your children grow older. Further, reassess trust fund management during transitions such as divorce, marriage and starting life as a blended family.
- Beneficiaries. Be sure your trust will be going to the proper beneficiaries. As life progresses, your beneficiaries, persons or entities you give your assets to, can change, especially in the case of blended families and divorce. Check in with your lawyer during such life changes to be sure your estate is set up as you intend.
- Special needs eligibility. If you have children or other beneficiaries with special needs, be sure the amount you leave to them will not interfere with their eligibility for governmental or other aid. Talk with your lawyer to be sure you can leave your children what you would like without costing them the funds they deserve.
Estate Taxes and Nursing Home Costs
Without precautionary measures, your estate can be vulnerable to taxes and seizure. Be sure to prepare your estate for the following situations.
- Taxes. Improperly set-up estate plans can be liable for taxes. You don’t want your children’s inheritance to be reduced because of easily-avoidable preparatory steps. Working with a lawyer can help minimize or avoid liability for federal or state taxes.
- Nursing home costs. If circumstances dictate that you need to live in a nursing home, your assets might be at risk because the state may use them to pay for your care if you no longer have the funds to do so. This situation could completely eliminate your remaining assets, and, as a result, your children’s inheritance. However, this situation can be avoided by working with a lawyer and setting up a specially designed Irrevocable Trust.
How We Can Help
At slnlaw, we understand the importance of setting up a well-structured estate plan to ensure your children receive what you intend. Our experienced estate planning attorneys can help you navigate potential pitfalls such as probate court, poorly-managed trusts, and tax liabilities. We work closely with you to create a comprehensive estate plan that protects your assets and secures your children's future. Let us help you make informed decisions and avoid costly mistakes, ensuring your legacy is preserved for your loved ones. You can use the button below to schedule a free information call, or give us a call at (781) 784-2322.
Meet Our Estate Planning Lawyers
Emily Smith-Lee is the owner and founder of slnlaw. She is a 1996 graduate of Boston College Law School. She was previously a partner at the Boston office of a large international firm, where she worked for thirteen years before starting the firm that became slnlaw in 2009. She has been recognized as Massachusetts Superlawyer each year since 2013, and in 2018 earned recognition as one of Massachusetts Lawyers Weekly's Lawyers of the Year.
Jenna Ordway: Jenna is a 2013 graduate of Quinnipiac Law School, and also earned an LLM in Taxation from Boston University in 2015. She has been affiliated with slnlaw since 2011, first as a law clerk and then as an attorney. Jenna has been recognized since 2019 as a "Rising Star" by Massachusetts Superlawyers. Jenna wrote a book on estate planning: The Road to Peace of Mind: What You Need to Know About Estate Planning. Jenna has helped many individuals and families with planning to protect their legacies and loved ones, and planning for the future and succession of their businesses.
Sharleen Tinnin: Sharleen is a 2010 graduate of Northeastern University School of Law, and earned her LLM in estate planning from Western New England Scool of Law in 2016. She has been with slnlaw since 2023. Prior to joining slnlaw, she worked with King, Tilden, McEttrick & Brink, P.C. on complex civil litigation matters. She previously worked for the United States Department of Justice, and received an "Excellence in Justice" award in 2017. Sharleen has helped many clients with planning for their legacies and their future, and navigating the probate process in Massachusetts after the death of a loved one.
|
|
|
|
|
