5 Estate Planning Questions Parents Need to Consider
It’s something no parent wants to think about: what would happen to my children if I pass away or become unable to care for them? However, this is one of the most important questions you will ever ask yourself and is a major reason why it is crucial for young families to have an estate plan in place.
Here at Margerie Law, I specialize in helping young families – with and without children – make a plan to preserve their legacy and protect their assets no matter what the future holds. When a family with young children come to me to begin or update their estate plan, I am thrilled to help them answer the tough questions and make the right decisions for them.
As a parent, you want the best for your children, and having an estate plan in place is one of the most important ways you can provide for their future. Whether you are thinking about children, expecting your first, or already have some little ones running around, here are questions every parent needs to ask themselves when thinking about estate planning:
- Who will care for my children should something happen to me? This is one of the most important decisions in any estate planning process. If your children are under 18, you must decide not only who you trust to care for them should something happen to you while they are still minors, but who has the ability to do so in line with your wishes for their future.This can be a tough decision. For help deciding who could best fulfill this role, ask yourself: who do I trust to raise my children according to my wishes? Who is physically able to care for my children? Who lives in the area or would be willing to relocate? Who is in a good financial and relationship situation to provide stability?
- Do I have the right life insurance policy? Life insurance is a safeguard against the unexpected. Having the right type and amount of life insurance can provide for your children’s future lives, education, and can pay down any debt you would leave behind should you pass away. However, there are a lot of options out there to choose from. A trusted financial advisor can help you find the policy that’s right for you.
- Have I created a trust to provide for my children’s care? You may assume that any assets you hold would automatically go to your children should you pass away, but this is not necessarily the case. Particularly if your children are under 18 years of age, the courts would control any inheritance until they come of age, meaning the person you’ve named as guardian may not have access to these funds.A trust allows you to outline exactly what should happen with your assets should you pass away or become incapacitated. With a trust, you can outline how a guardian may use your financial assets to care for your children and at what age the children themselves would inherit. There are many different types of trusts, so talk to an experienced estate planning attorney about your options.
- Who do I trust to manage my important assets? Along with making the important decision about who will care for your children and with what resources, an estate plan allows you to outline your wishes for what should happen to your other assets. Within your estate plan, you will name someone to the role of executor, or the person responsible for seeing that all your wishes for what should happen to these assets are fulfilled. An estate planning attorney can help you decide who would best fulfill this role (often a family member, oldest child, or close and trusted friend) and how to best outline your wishes so the executor can be prepared to do their job.
- Who do I trust to make healthcare decisions on my behalf? While many people think of estate planning as outlining your wishes for what should happen if you pass away, another big piece is planning for what should happen should you become incapacitated and unable to make your own decisions. In this area, the most important decision is who you will name to make healthcare decisions on your behalf. A health care directive and naming an agent for financial power of attorney will give you peace of mind that everything will go according to your wishes, no matter what happens.
Whether your children are tiny or all grown up, they will thank you for having a plan in place should something happen to you. The risks of not having an estate plan are that the courts will make decisions on your behalf, so take this opportunity to ensure your wishes are fulfilled no matter what the future holds.
No one wants to think about these tough questions, but doing so now may save a lot of heartache down the road. Looking to start or update your estate plan? Give Margerie Law a call today.
