If your children are under the age of 18 when you die, they will need a guardian, but the best person for the job may not be the one who has the financial assets to provide for them. The attorneys at the Bingham Legal Group PC often work with parents who have these concerns for their children’s future.
Even if you do not have a large estate in Michigan, you may be able to purchase enough life insurance to cover your children’s needs and expenses through college and beyond. However, you also want to know that the money will be spent in the way that benefits them most. Setting up a trust allows you to have a say in the financial future of your minor children long after you are gone.
NerdWallet points out that you can designate the trust rather than your children as the beneficiary of the life insurance policy, and name the trustee, as well. This may prevent the benefits from being held up by the legal process.
The money in the trust would be available to the trustee as you dictate. When your children are of age, or at an age that you choose, they would receive their portions of the balance of the amount after their education and other needs are covered. These provisions may create the impetus as well as the financial ability for your children to earn their college degrees and set them on the path to a successful career. More information about estate planning and minor children is available on our web page.