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Tips on Leaving Inheritances to Your Children

Posted on in Estate Planning

estate plan, children, inheritance, will, trust, Illinois estate planning lawyer, beneficiariesAccording to an article from AARP, baby-boomer parents will be leaving $30 trillion to their children over the next four decades, keeping in mind factors such as longevity, the economy and the stock market. There are steps you can take to ensure that the estate plans you make are carried out in the easiest and less painful way possible.

One of the most important factors to keep in mind is communication with your children about where you stand financially. Fidelity Investments conducted a survey that revealed that most people underestimate their parents' financial worth by approximately $100,000.

It's also important to let your children know who to contact in the event of your death, as well as where important documents are kept for safe-keeping.

Ideally, the division of your estate should be equal among your children. If, however, you choose a different division, explaining why you are dividing assets the way that you are can help ease any resentment later on. If you aren't comfortable having that discussion, legal experts suggest you leave a note in your will, explaining your decisions.

It's also not a good idea to choose one child to be in charge of the dividing of funds and property. It's better to do it yourself. For example, have a list made of who gets what piece of art, jewelry, etc.

Any insurance policies should have all your children listed as beneficiaries, not just one with the expectation they will share the proceeds equally with their siblings.

Many experts recommending setting up trusts for your children, this is another way to ensure that the estate you are leaving will not be spent foolishly after you are gone. The funds can be released to your child in stages and not just in one lump sum. You can also have provisions denying or delaying the release of funds, such as in the case of a substance abuse issue.

Estate planning can be complicated so it's important to contact a knowledgeable DuPage County estate planning attorney to make sure that your assets are protected

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