Parents share a very special bond with their children. They take every step necessary to ensure their children are cared for and are happy-taking them to the doctor's office when they're sick and making time for soccer games and clarinet lessons. Even as children become adults and start families of their own, that sense of devotion remains. Yet many parents fail to take the necessary steps to protect their assets so they'll benefit their children and other loved ones.
What will happen to your estate after you're gone? The following estate planning strategies will give you a general idea of the challenges and possible solutions that can help ensure your assets will be available to future generations.

Trusts Under Will
Drafting a will is a simple, effective way to make sure your assets will be distributed according to your wishes. However, relying solely on a will may not be the best way to protect your family-especially if your heirs aren't experienced in handling substantial assets. Imprudent investment decisions could jeopardize your family's future financial security. You can guard against these risks by establishing a trust under will.

Revocable Living Trust
Another alternative is to establish a revocable living trust. As its name implies, this type of trust is one you create during your lifetime, and you can amend or terminate it at any time, for any reason. The trust can benefit you, your spouse, or any other person you choose. Your trustee or co-trustee will manage the trust portfolio, or you can retain investment control, arranging for a professional trustee to take over if there's a future need. A revocable living trust also can be used to unify your estate plan. For example, you might make your retirement benefits or life insurance proceeds payable to the trust. Similarly, your will could provide for certain assets to "pour over" into your trust to be managed under its terms.

Gifts to Children and Grandchildren
Since 2003, you can give gifts of up to $11,000 ($22,000 if you and your spouse "split" the gift) to each of as many individuals as you wish without federal gift-tax consequences. Making lifetime gifts to your loved ones reduces the value of your estate-and your potential estate-tax liability.

Succession Planning
Many family businesses fail to survive into the second generation due to lack of planning. If you intend to keep your business in the family, you should examine various strategies that may be useful in accomplishing your goal. The key is to have a business succession transition plan in place. Work with your financial services partner to review your options and develop a succession plan that offers tax and other financial benefits.

Act Soon
You've worked to accumulate assets that can be passed on to your children and other loved ones. However, lack of proper planning could jeopardize the legacy you plan to leave. Don't wait to develop an effective estate plan that will help maintain your wealth for future generations. TPW