If you are primarily responsible for a child or grandchild, one of the most important things that you can do is to plan for what will happen if you should suddenly pass away. You should make plans for the long term care and financial well-being of any minors that you care for. You should also make sure that the minors have quick and easy access to funds after you are gone.
Many estate planning instruments require time to access. If you leave something to a minor in a Will, for example, then the Probate process has to be concluded before the assets can be used for the benefit of the minor. Trusts are a quicker way to get assets to a minor. However, if the Trust does not have enough liquid assets at the time you pass away, then the minor could still be in need. One way to avoid that possibility is to purchase a life insurance policy that designates the Trust as the beneficiary. As long as there is a responsible adult serving as a Trustee, the life insurance company will quickly pay out the policy.
Talk to an estate planning attorney about other ways that you can make sure that minors are immediately taken care of in case you are in an accident.
Stephen A. Mendel, Estate Planning Attorney
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