How to Create an Estate Plan as a New Parent
An estate plan is a crucial set of documents and plans that any new parent should have in place. It helps protect you, your family, and your assets in the event of disability, illness, or death. It can also help you provide for your children if something were to happen to you. A comprehensive estate plan not only includes a will but also details plans for guardianship for minor children, powers of attorney and healthcare directives, structuring of financial accounts, and potential tax benefits from trusts or businesses.
Why do you need an estate plan as a new parent?
Having an estate plan in place is important for any new parent because it can provide additional security against the unexpected. By designating legal guardians for your children in the event of incapacity or death, you make sure that your wishes are followed even when you are no longer able to speak on behalf of yourself or your children. Additionally, a thorough estate plan helps ensure that your financial goals are met while safeguarding the interests of those closest to you—your family—for generations to come.
Estate planning can be complex and making the wrong choices could lead to costly mistakes down the line. That is why it is highly advised that new parents seek assistance from an experienced estate planning attorney who is knowledgeable on state laws regarding wills and other documents related to estate planning. Doing so will help alleviate the stress associated with legal proceedings should tragedy strike and ensure that their affairs are handled responsibly.
Looking for an estate planning lawyer in Milwaukee or a nearby community? Contact Margerie Law today. We also offer virtual estate planning for folks across the state of Wisconsin.
The different types of estate planning documents
Common estate planning documents include wills, trusts, guardianships, advance directives (i.e., power of attorney), healthcare powers of attorney, HIPAA releases, and more.
Wills
The cornerstone document of any estate plan (and a document every parent needs) is a will. A will is a document that outlines who should care for your minor children should you pass away unexpectedly. A will also outlines how you want your assets distributed and names a personal representative to oversee the settling of your estate. Not having a will can lead to many risks. Without a will, the government may decide how your assets are distributed, who will take custody of minor children, and any other wishes you had may not be addressed. For example, if you have property or investment accounts, these could be distributed according to the default rules of each state. Additionally, any business interests or special trusts you have in place might be voided without a will, leaving your family with no clear direction on how to proceed. Finally, not having a will puts everyone involved in a financial and legal limbo that can lead to costly court battles which could easily have been avoided with proper estate planning documents in place. If you do nothing else, any new parent should absolutely have a will.
Healthcare Power of Attorney
A healthcare power of attorney is a legal document that allows a person to designate someone else to make decisions related to their healthcare should they be unable to do so themselves. It’s important to have this document in place before any unexpected health issues arise, as it ensures that your medical wishes are respected and followed by the right people. The person who is authorized by the healthcare power of attorney (also known as an agent or proxy) must act according to the wishes in the document and carry out any decisions made on behalf of the principal (the person for whom the document was written). In addition, all other involved parties, such as doctors and hospitals, must legally recognize and obey any decisions made by the agent.
HIPAA Releases
A HIPAA release is a document that authorizes the use and disclosure of protected health information (PHI) to someone other than the patient. PHI includes medical records, test results, and any treatment information. By signing a HIPAA release, the patient grants permission for others to access their personal health information for things such as insurance claims, legal cases, or payment processing. It’s important to know that HIPAA releases are voluntary and cannot be signed without the patient’s consent. The document must also contain specific details about what type of PHI is being released, who it’s being released to, and when the release was signed. Additionally, HIPAA releases expire after one year so it’s important to have them renewed regularly in order to keep PHI secure.
Do you need a trust?
Trusts are legal arrangements that allow people to place assets, income, and other property into a financial account for the benefit of another person or organization. Trusts are often used as a way for new parents to ensure their children have access to resources in the event of an emergency or some other type of unexpected circumstance.
When it comes to protecting and providing for their children, most parents want to ensure their children have all the proper resources available should something happen to the parents. Trusts can be particularly helpful in this regard, as they allow parents to set aside assets and money that can be utilized by the child while they are still minors. Setting up trusts also provides peace of mind when it comes to taxes, debts, inheritances, and more.
In addition, trusts can also provide guidance on how funds are used in addition to safeguarding them. Parents can specify how funds might be used, such as providing a college education or ensuring living expenses are covered until the children reach adulthood. Lastly, trusts offer many advantages that make them attractive even after the child has reached adulthood—such as preventing them from making poor financial decisions with their inherited money or protecting them during times of vulnerability.
Why you should work with a lawyer when drafting your estate plan.
Working with a lawyer when drafting an estate plan is essential for ensuring that your wishes are carried out. An experienced lawyer can provide valuable guidance and advice, as well as help you make informed decisions about what should be included in the estate plan. Furthermore, an attorney can help you handle any legal matters or disputes that may arise after the death of the person who owns the estate, if necessary.
A lawyer can also advise you on how to designate beneficiaries, determine how assets are distributed, and choose a guardian for minor children in case something happens to you or your partner. They will also have experience drawing up wills and trusts—two important documents that can ensure your desired outcome is attained while protecting your family’s interests in the process.
Finally, a qualified attorney will understand all of the laws related to your state’s estate planning laws—including tax laws and regulations—in order to ensure that everything is done properly and according to local requirements. This helps protect both you and your beneficiaries from costly errors that could lead to delays in settling an estate or other financial issues.
Looking for a Milwaukee estate planning attorney or virtual estate planning in Wisconsin? Click here to learn more about Margerie Law and contact us today.
