Why You Need an Estate Plan When You Have Minor Children
Estate planning involves additional aspects when you have minor children. To ensure a secure future for your family, you need to plan carefully.
When creating an estate plan that includes young children, you should address these primary concerns.
Name a Guardian
Likely, your foremost concern is naming a guardian for your children in the event of your death. If you do not have documentation detailing your guardianship wishes, the court chooses someone. Typically, the court appoints someone within your family, but perhaps there are relatives you do not want to care for your children.
Designate a Health Care Proxy
You may want to name someone to make medical decisions regarding your treatment if you and your spouse become incapacitated. Doing so relieves your minor children of the burden and ensures you have a person you trust directing your care.
Manage Your Children’s Inheritance
Naming beneficiaries for your assets can eliminate added stress on family members following your death. Married partners likely want to leave everything to their spouses. However, it is a good idea to name another person in the event you both die.
If you choose to leave assets to minor children, you must name a trustee to manage assets on their behalf. You can also document whether your children will receive their entire inheritance at 18 or if money will go into a trust for use in the future. The court will appoint someone to oversee your children’s inheritance if you do not include it in your estate plan.
Even if you have modest assets and are in good health, planning for unexpected events is critical. As parents of minor children, estate planning secures your children’s financial future.