3 Questions Every Young Family Should Ask About Estate Planning

By Jenny Ling, Esq.

A recent survey shows that just 36 percent of parents with kids under the age of 18 have a Will in place.  It is hard to think about the future when you are so focused on the present, but estate planning is something every parent should think about.  Putting your last wishes in a legal document is critical to ensuring your family is taken care of when you should pass away.

When we think about “estates,” for many of us, it brings up thoughts of Downton Abbey.  But we all have an estate.  An estate is simply everything you own – your car, your home, other real estate, checking and savings accounts, investments, life insurance, furniture, and personal possessions.  No matter how large or small, everyone has an estate and needs to make a plan for it.  And for young families, making a plan for their children should be top priority.  Here are 3 questions every young family should ask about estate planning.

Who will raise my children if I’m not around?

This is probably the most important question you will ask yourself when completing your estate planning.  This is often a difficult question for parents, but it is very important because if you have not named a guardian, the court will have to appoint someone without knowing your wishes, your children, and your family.

You do not want surviving family members fighting over who should do it, and you do not want this decision left to the courts.  Your children might end up living with a relative you have not spoken to in years, or even in foster care.  By naming a guardian, you get to choose someone who you feel shares your values and who will do a good job raising your children.  This is one of the most essential things any parent should do, and it should be done as soon as your children are born.

How will my money be managed should I pass away?

When you pass away, you probably want to have a say as to how all you have worked for is given to the people and organizations you care most about.  Most parents plan to give all their assets to their young children should they pass away.  However, children are unable to manage their parents’ estate until they become adults.

Without a plan in place, the court will appoint someone to oversee your children’s inheritance.  This could possibly be a professional guardian and a stranger to your family.  It will cost money, which will be paid from the inheritance.  Also, the children will receive their inheritance (in equal shares) when they reach 18 years old.  Most parents prefer that their children inherit when they are older and to keep the money in one “pot” so it can be used to care for the children’s different needs.  Establishing a trust for your children’s inheritance lets you accomplish these goals and select someone you know and trust to manage it.

Who can make decisions for me if I become incapacitated?

Estate planning is not just about planning for death.  It is just as important to make a plan if you were to become incapacitated. 

Both parents need healthcare powers of attorney that give someone else legal authority to make healthcare decisions for them if they are unable to do so.

Having a durable power of attorney for finances will ensure someone can manage your finances in you are not able.  These duties include doing simple things like paying your bills.  This can be a big benefit to family members – your spouse might need quick access to your checking account to pay the mortgage, for example.  Without this durable power of attorney, a court order would be necessary.

Don’t wait to make a plan!

As a young family, you already have a busy life.  And it can feel overwhelming to think about creating your estate plan.  But estate planning doesn’t have to be expensive or complicated.  Not having a plan in place can result in a worse financial situation for your family, caused by court costs and delay in accessing your assets.  Once your plan is in place, you will have peace of mind that your family will be protected if something should happen to you.

At The Law Offices of Jenny Ling, PLLC, we can help you create a plan that handles your assets in the exact manner you wish, taking into account all of your family dynamics, so your death won’t be any more painful or expensive for your family than it needs to be.  We offer flat-fee, customizable plans that fit your life so you can be certain that you family is taken care of, and that there is no question what your wishes are.

We offer a Child Protection Plan in all our comprehensive estate plans for families with minor children.  A Child Protection Plan ensures that your children will be protected in both the short and long term and provides for their financial well-being if you aren’t around.  Our Child Protection Plan also helps you give guidance to your children’s guardians about your values and parenting style.

If you are concerned that you don’t have a plan or that your plan won’t work when your family really needs it, Contact Us for a complimentary 15-minute phone call to learn how we can help you Make a Plan.

Jenny Ling is a partner at the Law Offices of Jenny Ling, PLLC.  She focuses her practices on estate planning, business succession planning, business and bankruptcy.