Providing protection for children

Usually when you think about protecting your children it is in the context of minor children - those that have not yet reached the age of majority and need adult guidance. 

Obviously, this is important.  Minor children need to have a guardian appointed in the event the biological parents are unable to care for them.  Trusts should be created to administer, invest and distribute assets for a child's benefit until they are mature enough to manage their own money. 

But what about adult children?  Do they need protection?  They may not need protection from themselves because they have reached a stage of maturity where they are capable of managing their own lives and their money.  Do they still need protection from the possibility of divorce and catastrophic financial events?  Absolutely. 

Every day we meet with parents of adult children - children who are fully self sufficient and functioning in the responsible, adult world.  Yet, the parents still express concern and appreciate the need for protecting their children from the bad things that can and do happen to good people. 

Divorce is a reality in our society.  There is no way to guarantee that every marriage is going to last forever.  As a result, adult children may need protection in the event of a divorce.  Trust planning for adult children can accomplish this goal.

Catastrophic financial events are also a reality.  During these economic times, bankruptcy and foreclosure are at all time highs.  What would happen if a parent were to die, leaving assets to their adult children outright, if that child is involved in a lawsuit, bankruptcy or foreclosure?  The likely result is the inherited assets would become subject to the claims of their creditors.  Trust planning can avoid this result.

Children of all ages that have a disability need protection.  It probably goes without saying but we are continuously surprised at the number of families that have not done proper planning for children with special needs.  Peggy's book, "Special People, Special Planning - Creating a Safe Legal Haven for Families with Special Needs" explains in easy to understand language how important it is to plan in a way that will protect both the individual and their entitlement to government benefits.  Hoyt & Bryan is hosting their Fifth Annual Special Needs Conference on Friday September 20, 2013 at our office located at One Senior Place, 715 Douglas Avenue, Altamonte Springs, Florida.  Call for more information or to make your reservation. 

If you want more information about planning for adult children, please attend one of our upcoming, complimentary  "Truth About Estate Planning" Workshops.