As a young mother myself, I am often asked about estate planning for young families. Unfortunately, too often, young families put off estate planning. It either isn’t high on their priority list, or they think because they are young and healthy, estate planning “doesn’t apply to them.” Nothing could be further from the truth. All young families need an estate plan, customized to their needs.
An estate plan for a young family will include not just a will that distributes assets. It also includes a guardian to care for minor children and naming someone to manage any inheritance for the minor children. A properly-done estate plan will also review your insurance needs and plan for disability or incapacity.
Naming a Guardian
If you have children and something happens to you, it can be expected that the other parent will continue to raise the child(ren). However, if something happens to both parents, who will raise your child(ren)? This is an important subject and a critical part of an estate plan. While this is often a difficult decision, it is an important one to make. If you do not name a guardian, the court will appoint someone. The court does this without knowing your wishes, your children, and your family members.
Distribution of Assets
Of course, the distribution of assets is another important piece of an estate plan. Married spouses typically want the surviving spouse to receive all assets. However, if something happens to both parents, you want to have direction as to how the assets should be used. This can help ensure your child(ren) will be provided for.
Managing Your Child(ren)’s Inheritance
Naming someone to manage your child(ren)’s inheritance is also important. If you do not name someone, the court will, and sometimes, that can cost money – money that doesn’t go to your child(ren). Additionally, if you do not make alternative provisions, all assets will be given to your child(ren) when they turn 18. Most parents prefer their child(ren) to inherit the money when they are older and “more educated” on how to spend and save money.
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If you need an estate plan for your family, or if it has been a few years since your plan was revised, contact a local attorney today.