Estate Planning for an Only Child

The Many Paths for One Legacy

Having an only child often streamlines the estate planning process since there’s no need to navigate the complexities of dividing assets among multiple children. That said, parents aren’t legally required to leave everything to their only child. Estate planning is as unique as your family, and you get to tailor yours to best suit your family. Along with providing their only child an inheritance, many parents also opt to leave a donation to a favorite charity, bequeath other loved ones with sentimental heirlooms, or even simply set funds aside in a trust for their only child to use for specific purposes.

Thinking Beyond the Lump Sum

Some parents feel uneasy about leaving a large lump-sum inheritance to their only child. Maybe the child has just entered adulthood, and they’re still learning how to manage their finances responsibly. Or perhaps the parents worry that a sudden influx of wealth could lead to unintentional overspending and create more stress than security. In some cases, parents want their child to put their inheritance toward a meaningful milestone. If this is true for you, your estate planning attorney can structure a trust that ensures your child will benefit from their inheritance in ways that support their future.

Setting Your Only Child Up for Success with a Trust

A trust allows you to set clear guidelines for how and when your child can access their inheritance. For example, imagine a parent, Sarah, who wants her 18-year-old son, Ben, to have financial support while ensuring he uses the money wisely. Sarah establishes a trust with $500,000 and names her trusted family friend, Ann, as the trustee.

Sarah’s trust includes specific milestones for distributions. When Ben graduates from college, he will receive $50,000 to help him get started in his career. If he chooses to buy his first home, the trust will release $100,000 as a down payment. Additionally, Sarah specifies that if Ben decides to start a business, the trust can release up to $150,000 to support that goal.

Beyond these milestones, Sarah gives Ann discretion to distribute funds for other important needs, like unexpected medical expenses or further education. Sarah wants her son to have a strong foundation to build his future on, and the trust she set up does just that. Further, it ensures that the wealth she worked very hard to earn and save throughout her life helps her child become successful.

Plan Ahead with Law Stein Anderson

Estate planning for an only child’s future requires expert guidance. At Law Stein Anderson, we help parents create custom estate plans that balance practicality with heartfelt intention. Whether you’re exploring trusts, charitable giving, or other strategies, we’ll work with you to craft a plan that protects your legacy—contact us today.