I got some great comments and questions about my last post, where I discussed protecting assets for our loved ones. And I thought many of you may be interested in hearing the answer to the most common question.
The question: Do these kinds of issues (risks to an inheritance) only apply to older, wealthier parents with grown kids, or should they be considered by parents with new babies, toddlers, grade school age children?
My opinion - they should be considered by ALL parents. Suppose a newly married couple has that first baby, is still paying off student loans, has a mortgage, getting started in a career - what do they have to leave that baby if something happens to them? Well, hopefully they will have a nice size life insurance policy to help raise the child and provide an education, get her or him started in life. So I guess I would break it down to 2 questions:
1. Have you provided enough funds to raise your children if a tragedy happened? (through life insurance, if necessary). If not, call your financial advisor or insurance agent ASAP to get more life insurance coverage. (when parents are young and healthy, even a $1 million policy or much more is very affordable for most parents)
2. Now, thinking of the funds being left through the life insurance , do you want that money exposed to all the risks I talked about in the newsletter? Regardless of whether the funds come from life insurance or other assets, the risks are the same.
So, everyone, new parents and older parents alike, please consider those risks in making your estate plan, so your family is protected. Thanks to those who asked a very good question!
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