Creating an estate plan allows for an orderly transfer of assets from generation to generation. It may also offer protection for those who are incapacitated and otherwise unable to make decisions. Still, there are issues to take into consideration when creating an estate plan to ensure that it meets the wishes of the person who creates it. For instance, it may be worthwhile to create trusts for children.
This may guard against a child spending money without having the maturity or ability to do so responsibly. Having a trustee control a child’s inheritance increases the odds that the child will have the money that he or she needs until adulthood. In fact, it may be worthwhile for anyone creating a will or trust to constantly review who their trustee is.
To avoid family drama, a trustee may be an entity such as a bank or law office instead of an individual. In addition to naming the right trustee, it is important to review beneficiary forms and other medical directives to make sure that they still meet the needs of an individual. Reviewing beneficiary forms can be worth doing, as the person named on the form is the person who receives money in the account regardless of what a will, trust or prenuptial agreement says.
Since creating an estate plan may be a complex endeavor, it may be beneficial to consult an attorney prior to or while creating the plan. An attorney may be able to help create documents or help an individual review medical directives or beneficiary forms. Having legal counsel review an estate plan may also increase the odds that components of the plan such as wills or trusts adhere to state and/or federal law.