728x90
my iParenting
From Our Sponsors
e-newsletters
Sign up to receive our free weekly e-newsletters

new terms of use
new privacy policy
award-winning products
The iParenting Media Awards program helps parents find the best products for their families.
Home › Articles › General Family Finance › Where There's a Will...

Where There's a Will...

Safeguarding Your Child's Future

By Melissa Granberry

Pages:  1  2  3  4  5  

Trust
A trust will allow funds to be invested and managed until beneficiaries reach a designated age, which can be determined by the parents. The will can also enable the executor to disburse funds as needed. For example, the child may need money for braces or tuition.

If you have a child with special needs, there are special trusts you can establish. These special needs trusts will allow your child to continue qualifying for federal programs.

Power of Attorney
A Power of Attorney allows someone to act on your behalf if you become incapacitated. "What happens if you are in an accident and left comatose?" Kotzer says. "Your will is absolutely useless to you if you are alive. Without a Power of Attorney, everything you have is generally frozen, and somebody has to go to court to be appointed with the power to act on your behalf, meaning writing checks, paying bills and so on."

Though creating a will may be emotionally difficult, it is time well spent. "Children and spouses dealing with the loss of a parent was the topic of much of the news for the last two years," Johnson says. "For a time you push it all out of your head. But then you really must handle it and in some way embrace it."

Consider the alternative: Your 18-year-old in his new car with friends in tow and a hefty inheritance in his bank account. Hopefully, this image will inspire a phone call to your attorney right away!

* Names have been changed for privacy.

"Do-It-Yourself" Will Software

Shari Odenheimer, an estate-planning attorney in Pennsylvania, offers the following warnings about using will-planning software:

  • State Laws – "Every state has different laws," Odenheimer says. "It's not that your will would not be binding, but clearly you are being generic, and that means you might be missing something."
  • Tax Planning – "Most states have some form of inheritance tax," she says. "You want to be sure that your will takes advantage of all possible deductions and things that are allowed to defer death taxes until the death of the second parent."
  • Living Trusts – "These are useful in some states, but not in others," she says.



Pages:  1  2  3  4  5  

Want to see more?

Comments

There are no comments for this article yet.Be the first to add a comment.

Post As:
Enter your comment below:
Title
Comment Text
CAPTCHA
Please note that any comments submitted become the property of Disney Family / iParenting and can be edited and posted at our discrection.