It’s not uncommon for parents to want to pass assets such as a New Jersey home to their children after their passing. However, there are many variables that you must consider when deciding how to transfer items to your sons or daughters. Ideally, you will take into account your child’s needs and ability to manage property when structuring your plan. If your son or daughter is a minor, that will play a role in determining how your estate is passed down.
Will your child make proper use of a given asset?
An individual who isn’t handy might not be able to adequately maintain a classic car or a large home. Furthermore, a person who doesn’t have a lot of money might not be able to afford the cost of maintaining such an item. Therefore, it may be necessary to sell an item and pass the proceeds to your next of kin as opposed to transferring the item itself to a beneficiary.
What should you do if your child is a minor?
If your child is currently a minor, it may be best to place his or her inheritance into a trust. Using this type of estate planning tool ensures that the assets will be managed by someone who you trust to protect your son or daughter’s best interests.
When properly structured, an estate plan may allow you to exert maximum control over your assets while alive and after your passing. Furthermore, it may minimize the risk of a will contest or other types of challenges to your estate plan. In addition to preserving relationships between surviving family members, avoiding a legal challenge may allow your affairs to be settled in less time.