Very few Philadelphia residents enjoy dwelling on their own demise. For parents, contemplating what might take place if we die before our children are grown is even more difficult. That said, it is absolutely essential that parents take the time to create an estate planning solution that would provide for minor children in the event of such a loss.
Once a guardian has been chosen, the next step lies in setting up a plan to provide financial support for their needs. One approach is to create a trust that will give the guardian the ability to cover costs such as tuition and basic living expenses. The remainder is paid out to the child once he or she reaches the age of maturity.
This approach is flawed, however, when we consider the fact that at the age of 18, very few people have the decision-making skills necessary to properly manage an inheritance. The end result can be significant losses, with little or nothing remaining in the earliest stages of adulthood. A better approach might be to structure a revocable trust that outlines clear timelines or achievements at which disbursements will be made.
Another benefit of a revocable trust is that once Philadelphia children reach adulthood, the structure of the trust can be altered by the parents. This provides a high level of flexibility. It also allows the opportunity to adjust one's estate planning package as their family continues to grow and change. A great estate plan must be revisited from time to time, and altered to adapt to the needs of the family.
Source: thespectrum.com, "Estate planning important when children, grandchildren are involved", Scott Halvorsen, Sept. 27, 2015