3 Tools Texas Parents May Need in Their Estate Plan

 Posted on August 29, 2022 in Estate Planning and Probate

No parent ever wants to think about the possibility of passing away while their children are still children. It can be a terrifying and uncomfortable thought. It is also statistically very unlikely, especially if your children currently have two living parents. However, life is nothing if not unpredictable. No one can predict the future. While you are highly unlikely to need an estate plan that provides for your minor children, it is far better to have one and not need it than to need it and not have it.

As you cannot leave money directly to a minor, even if they are your own child, you will need to use several different estate planning tools to protect them. If you have minor children and you do not already have a strong estate plan designed with them in mind, the time to start building one is today. 

Estate Planning Tips for Parents With Young Children

There are a handful of legal tools parents of minor children can use to protect their children should the worst happen. Documents and strategies that may belong in your estate plan include: 

• Will - Parents with minor children are almost always advised to use a will, because parents can use a will to name the person they would want to take custody of their children should the need arise. While there is no guarantee that the court will accept this nomination, courts do give great weight to the parents’ preferences expressed in a will. 
• Minor’s trust - Generally, the best way for parents to provide financially for their children or hand down property is through a minor’s trust. You will choose a trustee to manage the trust funds, to be used for the benefit of the children. This way, a trustee can distribute money as is needed for the children’s upbringing. You can also include a clause governing when your children should be able to directly take possession of remaining funds during their adulthood. 
• Testamentary trust - It is also possible for parents to use their wills to create a trust. It may seem a bit complicated, but one option is to create a posthumous trust in the terms of your will, and then leave estate property to that trust. This does mean that your will must be submitted to the probate court, and there may be a higher degree of court supervision. 

It is always better to be prepared. Once your estate plan has been created, you will have peace of mind knowing that your children are protected no matter what. 

Contact a Texas Estate Planning Lawyer

Geoff Mayfield, Attorney at Law is well-versed in a number of estate planning tools and strategies that can be used to protect minor children. Our experienced Wilson County estate planning attorneys will create the plan that is best for your children so that you can feel confident that they will be financially secure even in your absence. Call 210-535-0870 to start with a free consultation. 

Source:

https://statutes.capitol.texas.gov/Docs/PR/htm/PR.141.htm