For most Colorado parents, the needs of their children will factor strongly into how their estate plans are structured. A single parent may need to consider who would take care of a son or daughter if he or she were to pass on. This is especially important when there is no other parent with whom a child can live with or otherwise receive care. In addition to deciding who will care for a child, it is important to think about how assets will be passed down.
In many cases, it is best to pass assets to a child through a trust. A trust gives the parent the power to determine how and when assets are used. Furthermore, a parent can also name a person to manage those assets in accordance with the document’s instructions. For surviving family members, written instructions give them a better idea of how to meet an individual’s wishes after his or her passing.
Depending a child’s age, it may be possible for him or her to have some input into how assets are used. A child may also have some say over with whom he or she lives. It is essential that any decision a parent makes is ultimately in his or her child’s best interests.
Parents have many different tools they can use to provide for their children if they become incapacitated or pass away. The use of wills or trusts can help a parent determine who would care for his or her child and makes decisions on his or her behalf. Parents may want to meet with an attorney or estate planning professional to make sure that plan documents are structured properly and can meet their needs.