Your estate plan must safeguard your children, who are counting on you to ensure that they will always be taken care of by the people you want, in a way you want, no matter what happens.
At Sky Unlimited Legal Advisory, we are very passionate about planning for the well-being and care of the children you love. Over the years, we have developed an expertise for advance planning for the care of children in the event of the death of one or both parents. Without this advance legal planning, unthinkable events can (and do) take place:
Ø Your children could be placed into the care of the California Department of Social Services ... even if you have a will in place ... and even if you have a living trust! (Likely this circumstance would be temporary, but you never want your children in the care of strangers - not even for a minute.)
Ø Your children could be put into the custody and care of someone you would never choose, like the one family member who may have good intentions, but you don't want raising your kids!
Ø A judge, who doesn't know you or your family, will decide who will raise your kids, even if it is the last person you would ever want.
Ø A long and nasty custody fight could ensure or there might be a challenge to the guardians you have designated.
Ø Up to 5% of the value of your gross assets could be lost to court costs and other unnecessary fees through the probate process that can tie up your assets for years and deprive your kids of the resources they need.
Ø Unscrupulous people can take advantage of children when they turn 18 and get a check for whatever assets are left.
With advance legal planning, these problems and more can be avoided. A majority of estate planning attorneys do not address these issues. They do not plan from a parent's perspective and they do not have the expertise to do a comprehensive job.
Yes, these occurrences scare us, too! That is why we offer a Kids Protection Plan® with every estate plan we do for families with minor children.
Our Kids Protection Plan® includes a specific set of instructions, legal documents, and an ID card for your wallet. If you are in an accident, your Kids Protection Plan will help to make sure your children are never taken into the custody of Child Protective Services or anyone else you would not want. These clear instructions inform the Police and ensure your children will be raised by people you have selected.
To get started with your Kids Protection Plan®, please call us at (650) 761-0992 today or book a Family Wealth Planning Session® online now.
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Yet, amidst the hustle and bustle of daily life, it's easy to overlook a crucial aspect of their future: what happens to them if we're no longer here to care for them?
It's a sobering thought, but one that deserves your attention. You may assume that in the event of your untimely passing, your children will automatically be cared for and inherit your assets. However, the reality is far more complex and potentially unsettling.
Let's unpack why relying on these assumptions could leave your children's future in uncertain hands.
The Myth of Automatic Care
Yes, it's true that your children will inherit your assets upon your passing. However, without advance planning, the management of those assets will fall into the hands of a court-appointed trustee. This is an expensive proposition for the people you love most, and worse, the trustee may not necessarily align with your values or financial philosophy, leaving your hard-earned assets vulnerable to mismanagement.
And even more importantly – have you thought about what happens to your loved ones if you’re forced to leave your business unexpectedly because you die or become ill?
Like most entrepreneurs, your business and your family are your greatest loves. Show them just how much you care for them by making sure there’s a plan in place for their care, and the management of your business, when you’re no longer at the helm.
The Business Owner's Dilemma
Picture this: You're lounging on a beach, sipping a colorful drink with an umbrella, and basking in the glory of retirement. Sounds dreamy, right? Now, imagine your business, left to fend for itself like a lost puppy in a rainstorm. Without a clear plan for succession, your business could face uncertain times ahead, and the thought of your hard work going down the drain is anything but relaxing.
Plus, it keeps more money in the family and out of the hands of Uncle Sam.
In return, you get employees who are committed, work well in a team, and are loyal. This might even set the stage for a long-term succession plan for your family business.
Adding to these advantages, bringing your kids into your business can also lead to some helpful tax savings. Thanks to the Tax Cuts and Jobs Act (TCJA), these tax benefits are now bigger than ever.
However, it's crucial to ensure that if you hire your kids, they actually do real work, and you pay them fair wages. Otherwise, you might draw unwanted attention from the IRS. Some of the benefits of the TCJA will be expiring in 2025, so make sure to take advantage of these benefits this year while you can. I'll provide more details on this below.
It might seem like life insurance is an easy way to help secure your loved ones’ future – and it is – but your policy must be set up in the right way to have the best possible impact on your family.
The way you set up your beneficiary designations on your insurance policy can significantly impact its effectiveness, how it’s used, and who controls it after you die.
In this blog, we'll explore how not to name beneficiaries on your life insurance and how to name beneficiaries to ensure your loved ones have the funds they need to thrive when something happens to you.
DO NOT Name a Minor As The Beneficiary of Your Life Insurance Policy
Naming your child or grandchild as a direct (or even backup) beneficiary of your life insurance policy may seem like a natural choice, but if you do that you’re guaranteeing a bad outcome for the people you love.
Here’s a free website where you can name legal guardians for your littles, right now.
But in some cases, naming permanent legal guardians for your child may not be enough to guarantee your kids will always be cared for in the way you want by the people you want. And, there may even be a risk of your kids being taken into the care of strangers or someone you would never want.
Read on to find out if that’s the case for your family, and if it is, contact us ASAP to get your Kids Protection Plan in place.
You Leave Your Kids With Non-Related Caregivers
If you ever leave your minor kids with a caregiver who isn’t a grandparent, aunt, or other family member that the authorities would naturally leave your kids with if something happens to you, this is what could happen.