Q: How can I prevent my adult child from blowing their whole inheritance?
It's advisable to visit a Park Ridge estate planning attorney once you reach the age of 18– – regardless of your financial situation – – first to create a will that disposes of your property and assets upon death. Secondly and equally importantly, supporting estate documents like powers of attorney and health care proxies can protect you in the event you become disabled or incapacitated and unable to make your own financial and/or medical decisions.
While it's uncomfortable to think about, death or disability can strike even the young at any time and once a child turns 18, their parents can longer make those healthcare decisions on their behalf without having been granted the legal authority to do so.
Oftentimes, a couple’s first estate plan might happen after the birth of their first child. The most compelling reason to have a will when you have children is to designate the guardians of your minor children if you die before they reach the age of 18. If you don’t do it, the state will decide who raises your children.
Although your children are legally considered to be adults when they turn 18, that doesn't mean they are necessarily equipped or mature enough to handle receiving all or part of your estate – – especially in one lump sum payment. Do you have to give them their inheritance money all at once?
Fortunately, Illinois asset protection attorneys can utilize trusts to protect the assets you want to leave your children. There are numerous reasons to place your property in trust for the benefit of your children including:
protecting the assets from your children's potential creditors
protecting assets from your child's former spouse
protecting the assets from a spend thrift child
avoiding the delays and costs of probate
If you would like assistance with an initial estate plan, or would like to modify an existing estate plan, the Law Office of Thomas J. Hansen can help you. Contact us today to request a consultation.
From our office in Park Ridge, we have represented clients throughout Illinois for over 20 years in all matters of estate planning, tax preparation, and real estate transactions. We even make home visits if needed.