Page 60 - August 2018

Protect your children’s inheritance
With so many uncertainties and risks with your children, it is hard to know where to begin in your efforts to protect them. Let’s start with what is in your control and what far too few people do — pre- pare an estate plan now that protects your chil- dren in case something happens to you to-
estate plan, it should provide for the next phase of your child’s soon-to-be-adult life. Circumstances may have changed, and you can consider a simple amendment to your plan. Even if you have made it this far with no estate plan, there are many reasons
TOM TUOHY
day, as well as one that provides them with protection decades from now.
Your child is a minor
FOP
Benefits Plan
to get one now.
Distribution. Eighteen may be the age of majority, but
rarely is it the age of maturity. The human brain does not even fully form until the age of 23, the last part be- ing the frontal lobe, which governs reason — which ex-
You have a lot on your plate. It is easy to get distract-
ed by the day-to-day responsibilities and surprises along
the way to adulthood. But what if you were suddenly gone? There are no guarantees for any of us. Who will raise your child? What will happen to your savings and insurance? If you are married and your spouse survives you, custody will not be an issue. But what if you died together or your spouse was serious- ly injured? If you do not have an estate plan that specifies your child’s guardian, a public guardian will be appointed until both sides of the family argue it out in probate court for custody.
And as bad as that is, that’s the easy part. Your insurance proceeds, savings, property, and deferred comp will all be held by order of probate court until your child reaches 18. No good comes from any of that. You can and must protect the custody and financial support of your child with a carefully drafted liv- ing trust estate plan.
Your child is 18 — now what?
How did that happen? How time flew. If you have a current
plains a lot. Probate may no longer be an issue — if you have a trust — but now you face the unsettling prospect of your child receiving everything at age 18. You can choose the age and circumstances of distribution in a living trust and pro- vide for health, education and support by giving a percentage
over time. That is an excellent gift for your kids.
Disability. If your child has a legal disability now or acquires
one in the future through accident or illness, anything you leave that child is subject to reimbursement to the government for public benefits, or the benefits could be lost. Living trusts have built-in protections to protect 100 percent of your child’s in- heritance and can be used to supplement all government as- sistance.
Divorce or lawsuits. If your child is subject to any lawsuits, bankruptcy or pending divorce, your living trust will have a spendthrift provision to protect from any such claims.
Retirement. If you name your adult children as successor beneficiaries on your retirement accounts, they may be able to stretch their payments based on their life expectancy, using this lucrative opportunity to increase their future retirement funds substantially.
You have spent the best years of your life providing for your children’s welfare. Don’t lose the one opportunity you have to protect them long after you are gone. Get a living trust ASAP and verify your current deferred compensation account and IRA beneficiaries.
Remember:
• A will must be probated. The rule is that no one can le-
gally sign your name. Therefore, at your death or inca- pacitation, all assets in your name are subject to the full probate process, which averages 18 months and is costly.
• A living trust completely avoids probate.
• A living trust estate plan includes both health care and
financial power of attorney documents.
A fully funded living trust, complete with financial and health
care powers of attorney, is available to you at a 50-percent re- duced rate in your FOP Benefits Plan. Call today to lock in an additional police discount of $200.
Registration in the Benefits Plan for FOP members and fami- ly is free. Visit www.fopbenefitsplan.com or call 1-866-729-5454 for assistance with registering. d
Tom Tuohy is the founder of Tuohy Law Offices and the FOP Ben- efits Plan. He has been a police lawyer for 35 years. His father was a CPD detective, and his grandfather was CPD Chief of Major Investigations. You can reach Tom at 312-559-8400.
60 CHICAGO LODGE 7 ■ AUGUST 2018