Estate Planning for Young Families.
For many young families, estate planning seems like the sort of thing one does when they’re older. Perhaps they don’t think they can afford it, or they simply aren’t concerned due to their age and health. However, even a young and healthy adult can succumb to sudden illness or injury. While no one plans to die while their family is still young, planning for the possibility of such an event of prudent. In addition, estate planning does not need to be expensive. A young family can always start with the basic required documents and term life insurance, and upgrade their planning as their financial situation improves. The most important parts of estate planning for a young family include:
Naming a personal representative :
This the person who will handle your final financial affairs. This includes locating and valuing your assets and bills, hiring and attorney and advisors, and distributing your assets. This should be someone you trust and someone who is willing to take on this role. Naming a guardian for minor children Choosing the person who will assume guardianship of your children if something happens to you and your spouse is a difficult decision, but is important. Not having a named guardian means the court will need to appoint someone, and this may not always be in accordance with your wishes.
Providing Instructions for Distributing Assets:
The majority of married couples prefer their assets go to their spouse in the event of their death. If both parents die, they usually want their assets to go to the care of their children. Most commonly, assets will automatically transfer to the spouse of the deceased, but an estate plan will still help prevent any confusion and protect your wishes should your spouse become ill or die.
Naming a Manager for Children’s Inheritance:
Unless you have named a manager for your children’s inheritance in your estate plan, a court will appoint someone. This will likely be a stranger to you and your family, and will cost a portion of the inheritance. Most court-appointed inheritances pay out at 18. Some parents may want the money to be held for longer, and establishing a trust allows the parents to manage when the inheritance is dole out and by whom.
In the event of a tragedy, your life insurance will need to replace the income of you and possibly your spouse as well. A caretaker may be necessary for small children. A life insurance plan should have enough value to provide for children until they are grown, and in some cases parents may choose to pay for additional coverage to pay for college.
Planning for Disability:
In the event that you and/or your spouse becomes disabled due to an injury or illness you will ned a Medical Power of Attorney to give a trusted friend or your spouse the legal authority to make your healthcare decisions. A HIPAA authorization will allow your doctors to speak with those to whom you want them to speak, and you may want to choose to invest in disability income insurance.
The Law Center is available at 303-991-5200. Call today to schedule your consultation and find out what you should take into consideration while planning an estate for your young family.