What To Do With The Money You Don’t Want Your Kid To Have?
By Les Stephen
OK, I know this sounds crazy, but as a Financial Advisor, one would be surprised how many times I have heard this. I have been told, “my parents didn’t leave me a thing and I plan to do the same with my kids.” One famous person that comes to mind is Marie Osmond. She feels that it would be a disservice and deprive them of one of the most important gifts which is the ability to work. Others may not have a relationship with or flat out do not like their children. There also may be very understandable reasons, such as, they have already received their portion of the estate. Depending on the situation, the parent have some options to go about this. I have listed just a few ideas below.
Have a Will or Trust in Place
The obvious answer is to have in place a Will or a Trust. In most states, if there is no Will or Trust in place your children will probably inherit your assets. We highly recommend consulting a legal professional that specializes in this area. If your intention is to leave children out of your estate upon your passing, make sure your Will or Trust is up to date and written properly because it may be contested. Also remember, there are laws regarding kids being removed from your estate if they are under 18. Once again, I cannot stress enough to consult a legal professional that specializes in this area.
Use a Beneficiary Designation on Financial Accounts
Use a beneficiary designation on financial accounts that clearly showing who you would like to receive these accounts. Whether you would like to leave the money to a different individual, your church, or Save the Whales, making them the Beneficiary of the accounts is one easy way to go about it. By the way, do not forget about accounts at the bank and properties you may own.
Properly Set Up Investment Accounts
Another thought is that some investment accounts can be simply set up as a “lifetime only” payout. These styles of accounts are generally created to pay for the lifetime of an individual or couple, no matter how long they live, with no death benefit available after the passing of the individual or the second to die. This type of account is sometimes used in client portfolios for very specific reasons. This could give a possibly higher than usual lifetime of income without leaving funds to a beneficiary. This strategy could also be used if an individual had no living relatives or friends they wanted to leave the money to.
I know this was a rather strange blog, but sometimes so is life. Thanks for reading.
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The content in this article was prepared by the article’s author. Voya Financial Advisors, Inc. does not endorse its content, and the views expressed may not necessarily reflect those held by Voya Financial Advisors, Inc.