For instance, let’s say that you have three children and you want
to name them all as equal beneficiaries under your will. What do you want
to happen if one of your children predeceases you? (I realize that this
is a question that most parents don’t want to consider at all, but
estate planning is a voyage into the world of “what if”).
So, if one of your three children predeceased you, do you want his or
her 1/3 share to go to his or her children OR do you want his or her 1/3
share to go to his or her siblings?
Do you want your three children to inherit outright (meaning the money
is theirs to do with as they please as soon as they inherit it) or do
you want them to inherit it with a protective wrapper called a trust?
Depending upon how the trust is designed, it can provide protection from
life’s unfortunate events such as a future divorce, disability or
Maybe your child is a lovely person but has terrible judgment with money
and needs some guidance in deciding how to best utilize his or her inheritance.
For a child who lets money run through their fingers like water, a trust
can be a way to provide some structure and financial security.
One size definitely does not fit all when it comes to deciding how your
children will inherit (even for children within the same family). So don’t
stop with just naming your child as a beneficiary under your will; take
the next step and really give some thought to what might be the the best
way for each of your children to receive your legacy to them.