Financial Freedom in Retirement Blog

We believe today's saver deserves much more! Improper alignment of financial tools with your needs and preferences is the major source of missed opportunity, disappointment and regret.
And you know what? It doesn’t have to be that way!

By: George Wells


October 30, 2018

How Does an Estate Plan Protect My Children’s Inheritance

Topics: Estate Planning

How does an estate plan help your children? It helps you manage their inheritance. You’re able to decide who gets what, how they get it.

Managing Assets for Your Children’s Inheritance

You’re able to control for maybe one of your kids or one of your grandkids that has a tendency to spend too quickly to perhaps not make wise choices financially. You’re able to set up a plan in advance for them so that it doesn’t end up being a hindrance to them.


Problem with Putting Kids’ Names on Account

Clients often ask us, “If I have kids, can I just put one of them on the account and tell him or her to share it with the others?” Our answer is that you could, but that is a potentially dangerous estate plan. First, once you put someone on your accountant, that person becomes an owner with you, so all the life problems that person has can affect your account. For example, if you put your adult daughter on your account and she gets divorced, your account could be dragged into that divorce. Or if she’s in a car accident and gets sued and loses the lawsuit, that plaintiff could try to garnish her account. Even if those things don’t happen, if you put just one of your children on an account and tell him or her to share it with siblings, that child is not necessarily legally obligated to do that.


Keeping Inheritances in Your Bloodline

One of the most devastating situations imaginable is when a child passes away. It is important to keep your children’s assets in their bloodline. If they remarry, those assets will belong to the new son-in-law or daughter-in-law and will pass to their bloodlines. You can set up your estate plan in advance so your assets will go where you want them to go.

Appointing a Guardian and Trustee for Your Child

If you have young children, we advise that you appoint a guardian of your choice in your estate plan. The guardian is the person who will act on your behalf, take care of the children physically and serve as a trustee who manages their affairs financially as long as they are minors (under the age of 18).


Next: Common Misconceptions About Estate Planning Solutions and Probate

PreviousChallenges Families Face Without an Estate Plan


How Does FundMax Help with Estate Planning?

FundMax is an educational resource. If you don’t feel like you have fully exploited us for all the knowledge and insights we offer, do some more research. We provide these insights through FundMax, a free retirement resource guide that helps people optimize their retirement funds and avoid regret by making sure they are “all set” for retirement. At FundMax, you can ask questions, watch videos and read some things. We encourage you to explore a lot of material on the site so you can get an idea of our style. You will likely get a lot of your questions answered. If you still want to talk to us; you’re welcome to contact us. We are happy to answer your questions.

This is a resource we have developed for you, for your benefit. Make no mistake, we are a thriving financial firm that makes money. We are a financial firm that takes new clients. But first and foremost, we consider ourselves a significant resource to the public…mostly people we will never need to meet. We believe in providing you with valuable information at no charge. We know it can be intimidating to ask someone for help, especially if you’re a do-it-yourselfer or if you feel like you’re all set. We are here for you as a resource, and we get a lot of clients as the indirect result.


You can further explore our Estate Planning insights:

View our Estate Plan Index page. It's basically a road map to all of our most popular estate planning insights.

You can download our eBook 'The Ultimate Guide to Estate Planning'

This free educational ebook explains estate planning as simple and complete a possible.

New call-to-actionReady for a Financial Professional?

Okay, so you’re officially fired up about estate planning, but maybe you’re unsure about how to get started. No problem! We understand that all the information involved in estate planning can be a little intimidating at first.

  • Do you have questions, comments or suggestions after viewing our Estate Planning Guide? 
  • Would you like to video chat or talk on the phone to someone at FundMax before meeting with an attorney?
  • Would you like us to recommend an estate planning professional?

Referrals for Estate Planning 

If you’re looking for a referral from a tax or legal professional, we will refer people to you if we’re comfortable with them and if we and our other clients have had good experiences with them. We will not refer anyone to you if we are uncomfortable about doing so.

You might need us, but you might not. Maybe you came here and got all the information you need, and you are thinking, “I feel a little guilty because I got all this stuff from them and gave them nothing.” Well, share it. Send it to somebody else…or don’t. We are here for you. We are here for your benefit, so feel free to use all our materials to learn something new. We will be here, still serving you and giving you information.

If you have questions you would like to have answered that you think others might benefit from as well, contact us, and we will likely create a method to answer those questions as well. You are probably not the only one with that question. 

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