• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Kuhn and Kuhn Law Firm

South Carolina Estate Planning Attorneys

  • Home
  • Our Firm
    • About Our Firm
    • About The American Academy
    • Advantages of Working With Our Firm
    • Attorney and Staff Profiles
    • Talkin Law
  • Services
    • Asset Protection & Business Planning
    • Charleston Pet Planning
    • Elder Law & Medicaid Services
    • Estate and Gift Tax Figures
    • Estate Planning Services
    • Family Farms and Businesses
    • Healthcare Documents and DPOAs
    • Incapacity Planning
    • LGBTQ Estate Planning
    • Living Trusts
    • Probate
    • SECURE Act
    • Special Needs Planning
    • Will Packages
  • Reports
    • Advanced Estate Planning
    • Basic Estate Planning
    • Estate Planning for Niches
    • Trust Administration
  • Resources
    • Client Resources – Estate Planning
    • Consumer Resources – Estate Planning  
    • Elder Law Reports
    • Professional Resources
  • Contact Us
    • Directions to Our Charleston Office
  • Blog
Home / General / 6 Important Estate Planning Considerations – Part 3: Your Kids

6 Important Estate Planning Considerations – Part 3: Your Kids

May 14, 2018 by Ams Help

Often, when people think of “estate planning” they think it’s only about deciding who gets the assets. However, how they get the assets may be even more important.

The default under state law, in other words the cookie-cutter estate plan you didn’t know you already had, is to give assets outright to the children (and maybe other blood relatives, depending upon the state) upon the death of the surviving spouse. There are many reasons this one-size-fits-all plan isn’t ideal in the vast majority of situations. Not only doesn’t it take into consideration that you may want to leave a different share of the assets to different beneficiaries, but it doesn’t consider that different ways of leaving assets may be appropriate for different beneficiaries.

Let’s look at the Jones family. Bill and Mary Jones have three grown children, John, Susan, and Bobby. Each of them has different needs and abilities. John is an anesthesiologist. He has problems with substance abuse and has serious asset protection concerns. Susan is responsible and has amassed a great deal of wealth in the stock market. Bobby is a responsible elementary school teacher but is in a problematic marriage.

Bill and Mary love each of their children and they can demonstrate that love by leaving their assets to them (at the death of the surviving spouse) in a manner which will best help that child. John has asset protection concerns, so an outright distribution of assets would put those assets at risk, a purely discretionary trust with a third-party trustee would be more beneficial to John. Susan doesn’t have creditor risk, but could face a tax problem. Leaving the assets for Susan in a trust that will remain outside of Susan’s own taxable estate would serve her best. She could even serve as trustee and make distributions to herself as needed for her health and support. Bobby has neither creditor risk nor a tax problem. John and Mary can leave his share of the assets in a trust over which Bobby has complete control and from which he can withdraw whenever he wants. By leaving assets to Bobby in this manner, they remain his separate assets and not marital assets.

Bill and Mary love their children and have crafted an estate plan which considers the individual needs of each of them. They are leaving the assets in three very different ways because each child has very different needs.

Stephen C. Hartnett, J.D., LL.M.
Director of Education
American Academy of Estate Planning Attorneys, Inc.
9444 Balboa Avenue, Suite 300
San Diego, California 92123
Phone: (858) 453-2128
www.aaepa.com

  • Author
  • Recent Posts
Ams Help
Ams Help
Ams Help
Latest posts by Ams Help (see all)
  • Estate Planning: It’s Not Just About the Estate Taxes - July 30, 2018
  • Planning for the Unexpected - June 11, 2018
  • Estate Planning is Too Important to Procrastinate - June 6, 2018

Filed Under: General

Primary Sidebar

Subscribe to Our Blog

Kuhn & Kuhn Law Firm

Charleston
473 Savannah Highway
Charleston, SC 29407
Phone: 843-577-3700

Charleston Map

map for Charleston office

Kuhn & Kuhn Law Firm

Summerville
421 Old Trolley Road
Summerville, SC 29485
Phone: Our Satellite Office

Summerville Map

map for Summerville office

Opening Hours

Monday9:00 AM - 5:00 PM
Tuesday9:00 AM - 5:00 PM
Wednesday9:00 AM - 5:00 PM
Thursday9:00 AM - 5:00 PM
Friday9:00 AM - 5:00 PM

Footer

  • About The Academy
  • Disclaimer
  • Privacy Policy
  • Sitemap
  • Contact Us

© 2023 Kuhn and Kuhn Law Firm
All Rights Reserved.
Attorney Advertisement

footer-logo

Subscribe to our newsletter

  • Facebook
  • Linkedin
  • Youtube
  • Twitter

© 2023 American Academy of Estate Planning Attorneys, Inc.

Copyright © 2023 · Kuhn & Kuhn on Genesis Framework · WordPress · Log in