4 Key Estate Planning Steps For Young Families
Photo by Emma Basso
ESTATE PLANNING IS ESSENTIAL FOR PARENTS!
Anyone with children understands the pressures, chaos, and wonder of running a household and raising kids. The demands of the here and now can make it difficult to think further than the next few hours! However, the longterm wellbeing of a family rests on planning ahead for possible bends in the road - changes in health, resources, and even death.
Sometimes people assume that Estate Planning is something for the wealthy. Actually, everyone has some level of assets that include such basics as bank accounts, a 401(k), a car or home. Making a plan for these resources ensures that they go to the right people, that your debts are paid, and that your loved ones are cared for in your absence.
Here are 4 important steps for parents to put in place:
MAKE A WILL AND CHOOSE A GUARDIAN FOR YOUR CHILDREN
Is care of your children something you want to leave to the courts or to family arguments? No! This decision can be deliberate and thoughtful. You can choose a family member or close friend who has the physical and mental capacity to do the job well, proximity to your current home (or ability to relocate), financial stability, and compatibility with your child-rearing approach. Designating a guardian will be an important part of your Last Will & Testament.
GET LIFE INSURANCE
If you are no longer here to support your children, a strong life insurance policy can ensure that the funds exist to maintain their standard of living and even pay for college. You will want a trusted professional to help you choose a policy that best meets your needs.
SET UP A HEALTH CARE DIRECTIVE AND POWER OF ATTORNEY
Estate planning can also help if you are sick or incapacitated in some way. A Health Care Directive and Power of Attorney establish trusted people to make financial and health care decisions on your behalf following the stipulations that you have set in place. Often this can be a spouse, but can also be a trusted family member or friend who would ensure that your preferences are followed and that your family can continue to function smoothly.
CONSIDER A TRUST
Children under 18 years of age are ineligible to receive inheritance. Without a trust in place, the court rather than your guardian would control your resources until your child comes of age. If you want to stipulate the distribution of your estate—how much, when, and for what circumstances—a trust gives you that control.
At the end of the day, we all want peace of mind and hope to give our children their best future. Take these simple and important steps to set you on the path to these essential goals. Our legal team at Hillsborough Wills & Trusts will support you and your family as you Build Your Circle of Security.
Call us today at 919-245-8440 or contact us at: https://hillsboroughwills.com/contact