Estate Planning Tips for Families at Every Stage
Estate planning isn’t about obsessing over what-ifs. It’s about taking small, meaningful steps to protect the people you care about most. Whether you’re raising toddlers, helping your children transition into adulthood, or planning for grandchildren, the right plan ensures your family is cared for in the ways that matter most.
Young Parents Plan for the Unexpected
If you’re a parent with young children, the last thing you want to worry about is what happens if you’re not there. Planning ahead is your best way to take care of them. Who would step in to raise your children if something happened to you? The answer needs to be in your will. Otherwise, the court decides—and their choice might not be the one you’d have made. It’s also smart to pick a backup guardian, just in case.
Children shouldn’t have to manage money before they’re ready. A trust lets you control when and how they receive their inheritance. You could say they get access at a certain age or milestone, like finishing college. You’ll also name a trustee—someone you trust to manage the money responsibly until your children are ready.
Parents of Teens or Young Adults
When your children are older, the focus shifts from “Who will take care of them?” to “How do we make sure they’re ready to take care of themselves?” An 18-year-old isn’t always ready to handle a big inheritance—and that’s okay. Many parents set up trusts that distribute funds in stages, like one-third at 25, another portion at 30, and the rest at 35. It gives your children time to gain financial maturity while still giving them support when they need it.
Here’s something most parents don’t realize: once your child turns 18, you can’t automatically make medical or financial decisions for them. If they’re in an accident, for example, you’d need a healthcare power of attorney to access information or make decisions. Having this conversation now can save a lot of stress later. It’s wise to have them properly prepare their estate, no matter how small it is, so that you can manage tragic circumstances more easily. For instance, consider having them name you as a payable on death beneficiary of their accounts so you won’t have to probate a small bank account. Also preparing powers of attorney, and a will if there are any assets that would need to be probated, would make things easier if something happened to them. Just because they are young doesn’t mean you automatically get it. Proper planning is important.
Parents with Grown Children
Once your children are adults, estate planning becomes about protecting your legacy and making sure the next generation benefits. A trust can protect your hard-earned money. With the right language, you can keep your assets safe from your child’s creditors, lawsuits, or even an ex-spouse. Spendthrift provisions, for example, limit access to funds until they’re distributed, adding a layer of protection.
Want to help your grandchildren without stepping on their parents’ toes? Educational trusts are a great way to fund college or other training programs while ensuring the money is used for its intended purpose. You can also consider a generation-skipping trust to pass assets directly to your grandchildren while minimizing taxes.
Beneficiary designations on retirement accounts, insurance policies, and other financial assets can easily fall out of sync with your plans. Check them regularly to avoid surprises, like leaving money to an ex-spouse or excluding a new grandchild.
Check In Every Few Years
Life moves fast, and estate plans need to keep up. A good rule of thumb is to review everything every three to five years, or anytime there’s a big life change—like a new baby, a marriage, or a divorce. Keeping your plan current is one of the simplest ways to protect your family.
Estate planning doesn’t have to be a great undertaking. At Hoffman Walker & Knauf, Attorneys at Law, we help families take small, practical steps to create peace of mind for the future. Give us a call at 859-371-2227, and let’s make a plan together.
