For a lot of people, the end goal of estate planning is relatively simple. They don’t want to do anything extravagant. They’re not looking for some out-of-the-box solutions. They just want to give their children a better life.
In one study, for instance, a full 67 percent of people who were at least 51 years old said that their goal for their wealth was to “invest in their children and grandchildren.“
That said, the way that they invest may be very different from one family to the next. That’s why it is so important that they understand all of their estate planning options.
For instance, one person may want to invest in their grandchildren’s education. To do it, they may want to use an educational trust. This way, they know that the money is really going to go to tuition payments and school-related expenses.
Another person may want to invest in a child’s quality of life, perhaps helping them buy a better family home or retire early. In that case, it may be best to put the money into a trust that pays them when they reach a specific age. When the child turns 50, for instance, they could get their full inheritance, allowing them to retire early.
These are just two examples and there are nearly endless other options. Every family has different needs, and every parent’s idea of “investing” in their kids is going to look a bit different. It is crucial that they know what estate planning options they have to make their goals a reality for their family.
