One of the greatest gifts that parents can give their children at death is an effective estate plan that takes into consideration the needs and desires of their children. Whether it is a child receiving public benefits who requires a special needs trust, a child facing a divorce who requires creditor protection, or a wealthy family that is aiming to prevent estate or inheritance tax upon the death of each successive generation, with proper planning, parents can assure that assets pass to their children in the best manner possible for each specific child.

Outright vs. Trust

In considering how to leave assets to children, parents must first determine whether assets should be distributed outright to their children or placed in trust. In making this decision, parents should consider the specific needs of their children as there should be no one-size-fits-all approach to planning a child’s inheritance.