Clients with minor kids typically come to me for one reason: deciding who will care for their children if they pass away; that is, naming a guardian for them. However, most people generally overlook the amount of money their kids can inherit at a young age. Clients typically think they are not worth much, but when you begin to account for life insurance policies alone, their children could potentially inherit millions of dollars at the age of 18. Thinking back to when I was 18, I was not in the mindset to manage that kind of money, and I imagine the same was likely true for you at that time.
If you don’t plan accordingly, all you’ve really done is name a guardian for your kids. And even then, just because you designate someone as the guardian does NOT necessarily mean that person will actually end up as the guardian. The Court ultimately decides that based on the best interests of the child. The same can’t be said about your money. In many situations, a child’s inheritance is REQUIRED by law to be distributed to them at 18!
I encourage you to think about how much money your kids could inherit from you right now, if you haven’t planned accordingly.
Contact Hamrick Law regarding any estate and business planning needs!