The Four Questions of Estate Planning

by Jenny Ling, Esq.

One of the main focal points of the traditional Passover seder is the maggid, the telling of the story of the Exodus from Egypt. This story begins with the youngest person at the seder asking the Four Questions (Mah Nishtanah). These questions provide the impetus for telling why this night is different from all other nights.

Here are the Four Questions of Passover, but for estate planning.  If your youngest family member were to ask you about estate planning, what might they ask you?

Who will care for your children if something happens to you?

If you are a parent, 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 your money be managed should you 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 may appoint someone to oversee your children’s inheritance.  This could possibly be a professional conservator 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 so that they are more mature and responsible in manage their finances.  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 you if you 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.

Who will be your child’s “first responder?”

What would happen if you were out for a date night and had a car accident and didn’t make it home.  Do you know who would care for your children in the immediate aftermath?  Even if you’ve named guardians for your children in a Will, without special planning, your children may end up being placed in foster care until a guardian can be found.  This is especially important if you don’t have family in the area.  Your child could spend a couple of days in foster care until your family could get there.  Consider who you would call if you were running late to daycare – a friend, neighbor, even a trusted babysitter.  Anyone is better than a stranger for your child.

As you gather with family this Spring, consider what would happen to your youngest family members if something happened to you.  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 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.  You can even make a list of people that you would like to be in your child’s life, even if you aren’t there to facilitate that relationship.  Don’t wait to make a plan – Contact Us to ensure your children are taken care of, no matter what.

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.

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.