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Are you in your 20’s or 30’s? Recently married? Have young children or a little one on the way?

When it comes to estate planning, the techniques and tools are somewhat different for young couples with or without children or single parents than for older parents with adult children. For example, because you’re still building your estate and saving for your children’s college educations, gifting probably will not be part of your estate planning strategy. But one powerful technique that benefits you as well as older estate planners is the use of trusts. Let’s take a closer look at how trusts can benefit your estate plan.

Young-Couples-Financial-Tips

A living trust can provide for the secure management of the money you leave your children when you die. If your surviving spouse is not confident about managing substantial assets, or if both you and your spouse die, a living trust may name an institutional trustee to invest and distribute the funds according to your instructions. Such a trustee, usually a bank, will use professional money managers and provide the principal to your children for their basic material needs, education, healthcare, reasonable comfort and whatever you deem important for their support.

A trust not only minimizes estate tax and avoids probate, a primary need for older estate planners, but also protects your children when you or your spouse die.

Even if you don’t have children, an estate plan is still a necessity because you do have heirs. Who are your heirs? They could be your parents and siblings, other relatives, or friends. Unless you have an estate plan, those heirs will have to wait months or years for the probate court to approve their inheritance after your death. In addition, they may lose some of their inheritance to estate tax.

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