Blended Families. What if your family has multiple marriages, children and grandchildren from different groupings? Without a plan, some will not be treated the same as others and may not get an inheritance. With a plan, you determine what goes to your spouse, and what goes to which children and grandchildren.
Children with Special Needs. Without a plan your special needs child may lose Medicaid or SSI benefits and may have to spend his inheritance on care needs. With a plan, you can set up a Supplemental Needs Trust that will allow the child to remain eligible for government benefits and still have the trust assets to pay for other expenses that aren’t covered by those benefits.
Keeping assets in the family. Without a plan, your child’s spouse may wind up with your money. With a plan, you can set up a trust that ensures that your assets will stay in your family and pass to your grandchildren.
Financial security. Without a plan and the income replacement provided by life insurance, your family may be unable to maintain its current living standard. With a plan, life insurance can mean that your family will enjoy financial security.
Retirement accounts. (IRAs or 401k accounts.) Without a plan, your beneficiary may not reflect your wishes and may have negative tax consequences. With a plan, you can choose the optimal beneficiary with the best tax results.
Business ownership. Without a plan, you don’t name a successor, and risk that your family could lose control of the business. With a plan, you choose who will own and control the business after you are gone.