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3 estate planning tools to protect your child’s future

For parents, providing care for their children is an utmost priority. They evaluate their children’s needs not only in the present, but also looking forward in the future when they are no longer here. Fortunately, estate planning allows parents to provide support to their children even in their deaths.

If you are exploring estate planning tools to protect your child’s financial future, below are options you can consider.

Control asset distribution with a will

A will is the most common tool you can include in your estate plan. With a will, you can control your estate asset distribution, including who gets what and how much their share is. While children usually still inherit properties even without a will, having one will allow you to assign them specific properties that you think will benefit them in the future. Moreover, a will allows you to give specific instructions that reflect your wishes, which adds protection to your child’s share of the properties.

Safeguard your child’s funds with a trust

Establishing trusts is also a good method to guarantee your child’s financial future. Generally, assets in a trust are protected from legal claims, including court seizures and creditor claims. Unlike with wills wherein there are risks of contests, trusts ensure that your beneficiary receives the allotted properties or funds.

Maximize your child’s quality of life with a special needs trust (SNT)

If you have a child with special needs, you may want to consider creating a special needs trust for them. This estate plan tool allows you to leave funds to your child without affecting their eligibility for government assistance benefits. The funds in an SNT supplement your child’s medical needs and other lifestyle expenses not covered by a government assistance program.

Ultimately, your estate plan should reflect your goals and priorities. Whether you prioritize your child’s future or the protection of your assets, it is best to review your situation to find the suitable tools to help you realize your goals.