Estate planning tips for Illinois parents

On Behalf of | Oct 28, 2020 | Uncategorized

Eventually, some or all of the money or other assets that were acquired during your lifetime will be passed down to your children. Therefore, it is important to have a transfer plan in place that allows your children to use their inheritance wisely.

How much will your children receive?

The first question that you’ll need to ask when creating an estate plan is how much you want to give to your children. This will largely depend on how much your estate is worth after taxes and other expenses are paid. The size of your estate will often depend on how long you live and how much it will cost to pay for your needs during retirement.

Are your kids ready to receive their inheritance?

Assuming that your children are responsible with money, it’s generally best to be fully transparent about your estate plan. This means that you can feel free to talk about topics such as your current net worth, how assets were acquired or what will happen to them after you pass on.

However, it may be necessary to have multiple conversations if your kids are going to inherit money that could change their lives. A series of talks spaced over several months or years can help you gauge each son or daughter’s fiscal literacy and ability to manage assets that could be worth a lot. If you don’t think that a child can manage money or assets on his or her own, it may be best to put an inheritance in a trust.

An estate planning attorney may provide valuable guidance or insight as it relates to leaving assets to future generations. Your attorney may help you learn more about the different types of trusts that are available as well as the pros and cons of using them. Legal counsel might also help you craft a will, trust or other plan documents.