There are several ways that you can preserve the money you've saved for your kids. By planning ahead now you can avoid your children losing what you want to pass on to them through probate (the court process of settling your estate). Probate can take up to two years and can reduce the value of your estate by as much as 10 percent as a result of fees and court-related settlement costs.

There are several ways to avoid probate:

1) Revocable living trust - A revocable living trust will allow your possessions to go directly to your heirs instead of going through probate court. You can revoke the trust or change the terms of the trust at anytime and you retain control of your possessions until death. In order to create the trust you'll need to name a trustee -- someone who will manage the financial end of your estate. You can be your own trustee or you can choose a personal trustee (someone you know personally like a friend or family member) or an institutional trustee (a law firm or trust company, or another institution). If you choose to name someone else as your trustee, you can be very specific about the authority they're allowed to exercise on behalf of your estate. You'll need to place all of your assets in the name of the trust (for example, the Jane Doe trust) if you want the trust to be valid in court.

2) Payable upon death account - This is a bank account created simply by signing a form and naming a beneficiary. The funds in the account will immediately become property of the person you've transferred your belongings to upon your death.

3) Joint Tenancy - Joint tenancy is a way for you and your spouse to jointly and equally own property. When you die your spouse, the surviving owner, becomes the sole owner of the property.

4) Charitable Gifts - If you're worried about your kids having to pay taxes on your estate you can begin giving money or gifts from your estate to charity before death. Gifts less than $12,000 a year aren't subject to federal tax.

While you're planning ahead, it's a good idea to involve your kids. No matter how young, or old, they are, they'll need to learn how to save and invest for their own futures.