Children are the most beautiful thing which can ever happen to a family. We all start getting worried about the future and security of our children even before their birth. If you haven’t thought of estate planning before then you must think about it now because with children it becomes a necessary step. Maybe you have heard about estate planning before but you haven’t taken any action towards it yet. You should stop thinking about it because now that you have children it is a necessity to create an estate plan for their protection.
Estate planning works as a shield for your kids and it does provide future safety to them in your absence. We think that everyone who is thinking of starting a family should plan their estate. It is really going to help you a lot in the future and also it is going to work in favor of your kids. You might be aware of the fact that estate planning isn’t just about transferring the funds or estate but it is about making the future you taking control of the future while you can.
Estate planning for children
When we make an estate plan we often make it for the safety of our family and kids. You might already be aware of the fact that estate planning for the children is quite important because you want to ensure that your assets pass to them with minimal tax exposure and outside of the marital property or personal issues. If you and your spouse die because of some tragedy, then what will happen to your children? If you have minors assigning a guardian that you trust should come into consideration. Keep in mind without a proper estate plan your children might be subject to probate or a guardian controlling their life without having their best interest at heart.
A good estate plan can help your children while you are alive and when you are gone. People for the most part don’t just pass they become metal incapacitated or ill and unable to take care of themselves. Something as basic as a power of attorney can save them a headache in such a scenario by empowering them to make financial decisions and gain access to your savings or properties for financial situations to assist both you and themselves.
Estate Planning for children Important Steps
Will
You must write a will in order to start with your estate planning for children. Now, most young parents don’t think about assets or property when they write the will but they focus on the “guardian”. So, in your will, you must name a guardian who is going to take care of your kids in absence of you and your spouse. A will is also where you can state your wishes regarding how your assets are distributed amongst your children which can help avoid family feuds.
Life Insurance
You must buy life insurance for your kids so they can get benefits in your absence. We think that it is an important and much-needed step when you are thinking about the safety of your kids.
Make Healthcare Proxy/ Power of Attorney/ Living Will
A healthcare proxy is someone who will make a decision for your medical health if you aren’t able to make them somehow. You can’t pick your minor kids for this position you may appoint your spouse, a close family member, or even a friend. Power of attorney is someone who will make a decision on your behalf for all your finance-related issues. Living Will is where you can state your final wishes such as burial or funeral arrangements so your family isn’t burdened with such decisions on your behalf.
Estate planning for special needs children
Estate planning is very important if you have special needs children. Families with special needs children should be much more concerned about the safety of their kids in the future. If something happens to you and your spouse then they’ll be alone without any care. In the case of estate planning, you can at least pick someone to take care of them after your death and ensure some sort of finances that can be used for their care.
We have seen a lot of clients struggling while making an estate plan for their kids. It’s our duty to think about our family’s future in all cases. We think that estate planning can be an extra layer of protection for them. However, estate planning isn’t the only thing you can do for future security but it is an important one. If anytime you feel the need for advice on estate planning then you can directly contact us for a free consultation. We will be more than happy to help you in planning your estate for your children.
Being parents has always been a tough job. Taking care of your children and making sure that they are safe has always been the primary cause of concern for all parents. The same is the case in estate planning as well. Those who have children need to make sure that their estate plan primarily includes their children’s financial stability, especially when they are minors. Thus, this article is here to help such parents who need to develop the best estate plan for their children’s safe future.
Some Tips for Estate Planning for Parents
There are some critical points that you must consider while taking care of estate planning if you have offspring of your own. Here are some tips which are going to help you in this respect.
Tip 1: Leaving Assets Right to Children
Giving all the rights of the assets to the children, whether they are minors or adults, is not a wise choice. It would help if you were careful while making such decisions. Because, after all, they are young. And with all that money, it will be difficult for them to manage. They might spend all of the funds within a few years. So, it would help if you made this decision very carefully with lots of consideration.
In this respect, you can leave the assets to a guardian, who will take care of them until your children reach a certain age. This way, you can safeguard your money for the long term, and in the meantime, the guardian will be able to train your children about handling money and all the other assets.
Normally people would consider the guardian as their spouse. But, if you do not have that option, you can choose a close relative who can be trusted because you do not want all of your money to go into the hands of the wrong people at the end of the day. They might take advantage of it. So, go slow and think wisely before making such decisions.
Tip 2: Write A Will
Writing a will is so necessary if you have children. As mentioned above, if you cannot trust your children fully with the assets, you need to have a guardian to take care of them. You can appoint this guardian through the will. You need to name the person in the choice and give them all the rights of your children while you are around.
This step is essential for the parent while attempting estate planning because if the guardian’s name is not mentioned in the will, the decision will go to court. The court will get to choose the guardian for your minor children, and this choice might not match your preferences. Writing goodwill with proper directions and appointing a guardian is essential to avoid this situation.
Tip 3: You Must Have A Life Insurance
Life insurance is more of a financial choice than a legal one. But it is one of the smartest moves you need to make as a parent. Life insurance guarantees your family a certain amount of money on your untimely death.
This ensures that if one of the parents dies suddenly, the other parent will get a good amount of money to stabilize the family again. This is a sensible decision for people who have children. If something happens to one of the parents, the other parent will be able to take care of the children with the insurance money.
Tip 4: Designation of Beneficiaries
Beneficiaries are those people who will have the right to all your savings accounts after your death. So, if you have children, try to make your spouse or your children the beneficiaries of funds so that when you are no more around them, they can still have the required financial stability. If you fail to put the name of beneficiaries in your accounts, there might be a contest among family members regarding the money, which will only lead to a mess.
Conclusion!
Responsibility is the primary key to parenthood, and the only way you can fulfill your responsibilities towards your children after your death is through estate planning. So, make sure you make the right choices while making the plan. Speak with an experienced estate planning lawyer to learn more about how estate planning can best benefit you and your family.