Page 20 - The Jewish Voice - September '23

Page 20, The Jewish Voice

Lifestyles from page 19 The content of this article is general and should not be relied You might be surprised by the concern your children have
upon without review of your specific circumstances by competent for your financial well-being. Consider these findings from
Are You Single with a Minor legal counsel. Reliance on the information herein is at your a 2023 study by Age Wave and Edward Jones:

• 66 percent of millennials (generally defined as ranging
own risk, as it expresses no opinion by the firm on your specific
Child? If So, You Need a Plan circumstances or legal needs. An attorney client relationship is from 27 to 42) worry that their parents or in-laws may not
have enough money to live comfortably in retirement.
not created through the information provided herein.
Part 2 of 2 To comply with the U.S. Treasury regulations, we must • 83 percent of millennials would rather know their parents
inform you that (i) any U.S. federal tax advice contained in are financially secure in their retirement, even if it means their
By Anné Desormier- this newsletter was not intended or written to be used, and parents pass on less money to them.
Cartwright, Esq. cannot be used, by any person for the purpose of avoiding If you have children in this age range or older,
Last month we talked U.S. federal tax penalties that may be imposed on such person or who soon will be, how can you address their
about nominating a guardian and (ii) each taxpayer should seek advice from their tax concerns and potentially improve your financial outlook?
for your minor child (for advisor based on the taxpayer’s particular circumstances. Communication is the key. By openly communicating with
the care and custody of your family about your financial status, you can reduce
your minor child) and why. Financial Focus ® anxieties and misperceptions. If you’re in good financial
This month we will address shape, your adult children may be reassured that you won’t
providing for the financial Retirees: Talk Finances with be needing their assistance. And if you are feeling some
aspect of leaving assets Your Grown Children financial pressures, you can inform your children of the
to your minor child. By steps you are taking to improve your situation.
creating an estate plan, you By Sally Stima Stahl One such step may be to reduce your cost of living —
can address your minor child’s care and custody and provide When you’re retired, you’ll the less you spend day to day, the better your ability to
instructions about how your money and property should be likely have some financial preserve your investment and retirement accounts. You
used for their care should something happen to you. Note: concerns — just like all retirees. may be able to reduce costs in many small ways, such
This article does not address the intricacies of homestead However, if you’ve invested as ending streaming services you no longer use, but you
property in the state of Florida, which has unique issues. regularly and followed a long- could make an even bigger impact by downsizing your
Rules for Your Child’s Inheritance term financial strategy, you living arrangements. In fact, 72 percent of today’s retirees
Who will be in charge? should be able to address most have downsized or are willing to downsize to reduce
A minor child cannot handle their own financial affairs issues that come your way. But their housing costs, according to the Age Wave/Edward
(unless they are emancipated); they need an adult. If you pass there’s one important action Jones survey. Downsizing isn’t for everyone but, if it’s a
away without an estate plan, the other legal parent may be in that’s sometimes overlooked by possibility for you, it may be worth considering because
charge of managing the money and property you have left retirees: sharing their financial the savings could be significant.
to your child. If the other legal parent is unable to manage situation with their grown children. And this knowledge can
your child’s inheritance, then the court will have to appoint benefit everyone in your family. Lifestyles on page 21
someone to serve as guardian over these assets. An estate
plan allows you to name the person you want to control the
only use state law and the people who appear in court to Experience Dentistry with a Woman’s Touch
money and property. Without an estate plan, the judge can

determine who will manage the inheritance.
When and how will your child receive their inheritance?
If you do not have an estate plan, your child’s inheritance Cosmetic & Comprehensive Restorative Dentistry
will be managed for their benefit until they reach the age of
majority, and then it will be given to them outright. Although State of the Art & Same Day Restorations
they will be a legal adult, they may not be prepared for a
large influx of money and property. Also, you may have Nitrous Oxide/Oxygen Sedation Available
certain things that you want the money to be used for.
With a trust, you can draft instructions for exactly how you
want the inheritance to be used. You can create a revocable Joanne Green, D.D.S.
trust or include these instructions in your will (known as a
testamentary trust). The important distinction between these 10887 N. Military Trail, Suite 6
two options is that a will has to be filed with the probate court, Palm Beach Gardens, FL 33410
and the proceedings will be public and overseen by a judge.
A properly drafted and funded revocable trust, on the other (561) 622-2815 • www.joannegreendds.com
hand, can be managed without probate, and no documents
need to be made public. Medical College of Virginia School of Dentistry - Cum Laude
There are many options available to you when crafting Hospital of the University of Penn - General Practice Residency Training
instructions for how your child’s inheritance should be Harvard Dental School - Former Instructor
managed and distributed. Your minor child can receive a Boston Brigham and Women’s Dental Group - Staff Dentist
percentage upon reaching a specific age (e.g., 50 percent at
30 years old and the remainder at 50 years old). You can also
structure your child’s trust as an incentive trust to allow the
trustee to give your child money only after they meet certain
goals (e.g., successfully completing postsecondary education,
being sober for one year). Alternatively, you can leave the
decision of how and when to give out the funds exclusively
up to the trustee’s discretion. This is sometimes referred
to as a discretionary trust. Because your child will not be
guaranteed a specific amount of money or piece of property,
the funds will be better protected from any future creditors
or divorcing spouses that your child may have. However,
when deciding to use a discretionary trust, it is important to
choose your trustee wisely and provide clear guidelines for
the trustee to consider.
When considering who to select as the trustee of your
minor child’s trust, you can choose a family member who
knows your child and understands your wishes. If you do not
have family that you would like to fill this role, you can look
to your close friends. These people may already be a large
part of your child’s life and may understand your wishes.
Lastly, if you do not have someone who you would want to
serve as a trustee, you can hire a professional trustee, though
be aware that professional trustees charge for their services.
While all trustees are entitled to compensation, a professional
trustee may be more expensive and have set fees.
Although Florida state law will provide your child
with a guardian, someone to manage their inheritance, and
a distribution plan for their inheritance, this is the least
desirable result. You have the power to design an estate plan
that is unique to your child’s circumstances and allows you
to choose the most trusted individuals to guide them if you
are no longer able to. We would love the opportunity to help
you create the best plan for you and your child or to update
your existing plan. Call us to schedule an appointment.
Call our office today at 561-694-7827, Elder & Estate
Planning Attorneys PA, 480 Maplewood Drive, Suite 3,
Jupiter, FL 33458.