Life is full of surprises. Unfortunately, not all of them are good. We never know when injury, illness or even death might occur and these unexpected events leave our loved ones to deal with the aftermath. This can be even more difficult when those loved ones are minor children, as they’ll need someone to care for them in your absence.

Fortunately, there are things you can do now to ensure that your children are well cared for, even after you’re gone. An estate plan includes documents that can provide for your children’s immediate well-being as well as their future.

The first thing you’ll want to do is to name a guardian to oversee the day-to-day care of your young ones. This should not only be someone you trust but also someone with the same values and beliefs as you. Consider your guardian’s living situation as well as the schools your children will attend, the religion they will practice and anything else that’s important to your children’s upbringing.

Also remember that if you choose a couple – your brother and his wife for example, the wife would then assume sole custody of the children if your brother passed away first. Be sure that this is your intention before you make such a designation.

In addition to choosing a guardian, you’ll also want to decide who should oversee your children’s financial affairs. This is known as a custodian and it does not have to be the same person as your designated guardian. This person will be in charge of managing your children’s assets until they come of age so choose someone who is a capable money-manager.

A trust will give you the flexibility to provide your children’s inheritance in smaller increments, even based on certain milestones and accomplishments if you wish. This document effectively creates a legal entity that holds title to your children’s assets until such time you designate the assets should be transferred. The trust is managed by a trustee, which may or may not be the same person you’ve chosen to act as guardian and/or conservator.

Making these difficult decisions now will ensure that your children are always well-protected, no matter what the future might hold.

The Law Offices of Saul Kobrick, P.C. is a member of the American Academy of Estate Planning Attorneys.

Estate planning for a blended family can be more challenging than you might think. In addition to dividing up the marital estate, you also have to consider how to provide for children from a former marriage in the event that you pass away first.

Why is this a separate concern?

If you were to pass away, your share of the marital estate would likely be left to your new spouse. That means that when he or she dies, your estate plan will no longer govern the assets – instead, it will be your spouse’s estate plan and any children you have from a previous marriage are no longer entitled to that estate under the laws of intestacy.

To remedy this, parents of blended families have to take extra precautions to ensure that all the children are well-provided for, whether from the current marriage or not.

A prenuptial agreement for example, can distinguish your separate property from the marital estate. This is important because it ensures that this property will not automatically pass to your spouse upon your death. If you’re already in a blended family and didn’t do a prenup, a post-nuptial agreement will work just as well.

Divide the estate on paper, together with your spouse and then bring the kids in to explain what you’ve done. This ensures there are no surprises down the road as everyone knows what to expect. It also reinforces the family bond to all your children and eliminates the idea of “favorites.”

Choose someone other than the step-parent to be your executor as the children from your previous marriage may not take well to a step-parent doling out your belongings. A neutral party is best and the distribution of your assets will seem more “fair.”

Get creative with your bequests by using a trust. A Living Trust allows you to offer incentives to your heirs for specific accomplishments and it also allows you to structure your property so that all your heirs benefit without just splitting up the assets and moving on. You could for example, divide the income from rental properties you own among your heirs while the trust itself continues to own and maintain the actual properties.

Of course, these are just a few of the ways to avoid family disputes after you’re gone. To learn more about estate planning for blended families, contact our office today.

The Law Offices of Saul Kobrick, P.C. is a member of the American Academy of Estate Planning Attorneys.

Custodial accounts are typically set up by a parent for their minor child, although it can also be opened by an Executor after you pass away. The custodian is the person that’s put in charge of the account – you while you’re still alive and then someone of your choosing after you’re gone.

It’s fairly simple to set up through your Will. You simply state that any money the child inherits should be put into a custodial account, and then you name the custodian. If you have more than one child, each child will have their own custodial account to be used for their needs only. The Uniform Transfers to Minors Act governs the management of the account, such ashow it’s to be used.and an end date for the account to be closed. This end date in New York can be when the minor reaches age 18 or 21.

The biggest drawback to a custodial account is that the child at age 18 or 21 has total control of how the money is spent. You may want it to pay for college but when your child inherits the account, they can spend the money any way they wish.

To learn more about leaving an inheritance to your minor children, contact our office today.

The Law Offices of Saul Kobrick, P.C. is a member of the American Academy of Estate Planning Attorneys.