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An estate plan is a great gift for your adult children

April 30, 2021 by Tom

In a recent WSJ article, Malcolm Butler, president and CEO of the The Fiduciary Group in Savannah GA, argues that giving an estate plan to your adult children might be the best gift you can gift to them and your grandkids.
Butler argues that new parents can be overwhelmed with the incredible responsibilities associated with caring for a newborn, so they aren’t always thinking about the importance of drafting wills and other estate-planning documents. According to a 2020 Caring.com survey, only 16.4% of Americans between the ages of 18 and 34 and 27.2% of Americans between the ages of 35 and 54 have estate-planning documents. Dying without a will can lead to serious financial problems and burden surviving family members with avoidable stress. For example, if new parents don’t appoint a guardian in a legally binding will, a judge could ultimately decide who will raise their children in the event that the parents pass away before the children reach the age of majority.

In addition, given the financial demands associated with raising a child, new parents can be short on cash and tend to postpone spending money on expenses not seen as necessary and immediate. Investment-savvy grandparents should consider gifting an estate plan in order to make sure that their grandchildren are adequately protected in the event of the premature death of their parents.

High net-worth investors already understand the importance of strategy, planning and adhering to a long-term perspective. Those same principles apply when it comes to gifting an estate plan because you are, in essence, taking steps to prepare for various future contingencies and to ensure that your grandchild will be protected, both financially and personally, in the event of an unforeseen emergency affecting your adult child and his or her spouse.

Butler’s suggestion might presage a trend of helping our young adult children.  If you are interested in helping your adult children with a plan, contact us to discuss options.

MWR

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