What will happen to my children when I die? Who will take care of them? The questions sound ominous, but it is a question every parent asks. Leaving their children helpless and hopeless is every parent’s fear. Every parent, especially the parents of minors should have a will. It is the important thing you should do to make sure that your children are taken cared for the by people you when you die. Making a will can also ensure that your children inherit your estate when the time comes.
You can appoint person to act as both personal and property guardian of your children, or select two different people who will act as a personal guardian to your kids and another person who act as a property guardian or trustee to manage your estate until your children reach adulthood and can manage the estate on their own. There are several ways on how you can leave your property to your young children. A trusted probate lawyer fremantle can help you in setting up your children’s inheritance. Here are the three most common ways of leaving your estate to your young children.
With property guardianship you can designate someone who will act as a property guardian. The property guardian is the one who will handle all your finances in behalf of your children who are below 18 years old. The court will appoint the guardianship according to your instruction in the your will. The court will also monitor guardian’s actions closely. Any of the decision the property guardian makes is subject to court approval. The property guardianship will end when all your children turns 18 years old. At that time, your kids can use your money and your property in whatever way he/she wants without any restriction.
A custodial account is an account set up for minor. If you have a full trust to the person you plan to designate as your children’s property manager or trustee custodial account is best way to leave your property to your kids. A custodial account does not require court approval and the court has no control over the custodial account. Your children’s financial trustee will be acknowledged by banks and other financial institution immediately. With that transition of property will be much easier and smoother. However, if you are not 100% sure that trustee you choose will make solid financial decision for the benefit of your children custodial account is not advisable.
This is the most popular way of leaving inheritance. That is because setting up a trust fund can give you more control over on how your property and money be spent. With a trust fund you can particularly name the amount and age at which distribution are to be made. You can also divide the money which he/she can use at a time and set limit on how the money you left are to be used. With trust fund you can individually tailor the fund to each of your kid’s needs.
You need to name a trustee in your will. The trustee will have to open a trust fund account at a financial institution such a banks or brokerage firms. It is also a responsibility a trustee to file tax returns of the trust funds every year.
How you choose to secure your children’s inheritance will is your choice. As a parent, you know which is best for your kids. A probate lawyer fremantle can assists you preparing your will so your children will be protected when something will happen to you.