Thursday, October 9, 2014

ESTATE PLANNING

What happens if you fail to plan for your minor child?

If you do not plan for the needs of your minor children, a Court will take charge of the assets in guardianship proceeding.  Even if you nominate a Guardian, the Court will have the final say.  Not only is the guardianship process expensive, but there is no way to ensure that the Court will carry out your values and desires for your children.  The Courts generally want to protect minors.  Therefore, they will set the minor’s money into a blocked account that can only be accessed through a Court Order.  If the child, for instance, needs braces, you would have to petition the Court and go to a hearing to get guardianship ends when the child reaches age 18.  At the time, the child is given unconditional control of their property.  Most people do not want to hand over a larger sum of money to an 18 year old, who could blow through that money in a short period of time.  Most 18 year olds do not have the maturity level yet to handle a large sum of money


The guardianship proceeding through the Court can be circumvented by setting up a living trust for the benefit of your minor children.  If that trust is properly funded with your assets, you can avoid any Court intervention.  The terms of the trust can provide for the child’s health, education, maintenance and support.  You can decide at what age you want the child to access the money and for what purposes.



LAW OFFICES OF SUZANNE M. GRAVES, INC.
A Professional Corporation
Suzanne M. Graves
Attorney & Counselor at Law 

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