Young families today are busier than ever. Between work, school, after after-school activities, it can be hard to sit down and find the time to think about the future. Thinking about what would happen to your kids if you die is difficult but necessary. Young parents should consider whether or not their children will have enough money for their daily necessities, and for college.
Deciding who to appoint as the children’s primary caretaker is also an important decision. Young parents who haven’t completed their estate plan are not alone. A recent survey found that 64% of Americans do not have a will. If you’re parents to young children, here are a few reasons why taking the time to create an estate plan is so important.
Why Young Families Should Consider an Estate Plan
1. Choosing a Guardian for Your Children Is Important
Thinking about not being here to raise your children can be distressing. Nonetheless, one of the most important parts of estate planning for young families is to appoint a primary caretaker. Choosing a guardian now can save your children stress and pain should you end up passing away. When parents do not choose a guardian before their death, a Massachusetts family court judge will select a guardian. Parents may not want the person that the court selects as the guardian to raise their children.
When determining who to select as a guardian, consider whether the person lives close by, and whether he or she is physically up to the task of raising children. Is the person good with financial issues? Does the person have quality relationships? Would he or she have the parenting skills to raise your children in a safe and stable environment? These are all questions to consider when selecting a guardian.
2. Ensuring the Financial Security of Your Children
As a young family, you may be working your way into financial stability. Many young parents assume that since they do not have a wealth of assets, estate planning is not valuable. Young families do not need extensive assets in order to make estate planning valuable. For example, taking out a life insurance policy can provide the financial security your children need to become well-rounded adults.
Experienced estate planning lawyers can help you select an effective life insurance policy. In some circumstances, creating an irrevocable life insurance trust can be advantageous. Life insurance trusts allow the proceeds from the life insurance policy to pour directly into the trust and become available immediately.
3. Appointing a Trusted Executor Can Be Incredibly Valuable
Most parents desire to give all of their assets to their young children should they pass away. Children are unable to manage their parents’ estate until they become adults, however. Appointing a trusted executor will help you make sure that your children receive money and assets as soon as possible. Parents can appoint an estate executor to manage and distribute their assets according to their wishes.
Many young families own cars, retirement accounts, and a house. An executor will manage the property for the benefit of the beneficiaries, the children, and make sure they receive all of the parents’ assets. When selecting an executor, choose someone who is trustworthy and up to the task of administering the estate.
The Estate Planning Lawyers at Surprenant & Beneski, PC Can Help
At Surprenant & Beneski, PC, we understand that thinking about the possibility of passing away with young kids is difficult. If you need to create an estate plan, our empathetic and skilled lawyers can help you do so. Creating an estate plan early on in life can save you significant money in the long run and give you peace of mind.