Young Families and Estate Planning: What to Consider

Young families and estate planning – those are two words that don’t often go together. But they should…

Planning and having a family are, in my opinion, among life’s greatest joys. Welcoming the arrival of your first child is an experience that often gives rise to a swirl of emotions that include fear, pride, and joy! Subsequent healthy children generate a little less fear and more delight once parents have a little experience under their belt.

Getting through the first few years with your newborn is quite an accomplishment. Every parent imagines the years unfolding and the many wonderful milestones they’ll experience together with their children.

Lots of planning goes into having a family. When it comes to young families and estate planning, a lot of thought and preparation is also necessary.

And once you’ve started your family, there are other plans that must be attended to. I’m not talking about the most obvious things like a college fund, but about the planning that needs to be done if one or both parents should meet with tragedy. Estate Planning should be at the top of every new parent’s to-do list.

I’ve provided a few questions that will help you establish an estate plan that will address the important needs of your young children.

Who will take care of my children?

This is without doubt the most important decision you’ll make should your child be left without both parents. When deciding on a guardian for your children consider the following: The age of the guardian is important. Is the person physically able to care for your kids? Does the person live close? If not, would he or she consider relocation? Are this person’s finances and relationships stable? Will the person give your children the life you want for them? Also consider their values, and parenting style.

Who will make medical and financial decisions?

If both, you and your spouse or partner are seriously injured and unable to make important decisions, you must have a healthcare directive and a durable power of attorney. This can be the same individual or you can select one person to make healthcare decisions and another to manage your finances. In most states a surviving spouse will be the obvious person to fill each of those roles. When your children are young though, you need to think about the worst-case scenario.

Do You Have A Trust?

When you have young children, a trust helps you specify how and when to pass money and belongings to them should both parents meet with an early demise. Unless specified in a legal trust document, the guardian you’ve assigned for your children would not automatically be able to use inheritance money to care for your children. The court would be in control until the child reaches the legal age of 18 or 21. Within a trust, you decide who will manage the money and decide when the children will receive trust assets.

Tragedy Strikes Without Warning

The thing about tragedy is that it strikes without warning. Waiting to plan for a tragedy – even when considering after the fact is not a plan. Guardianship and financial planning are two top priorities than need to be in place as soon as possible. And remember, a yearly review of your estate plan allows for changes as your children grow up and your life unfolds without tragic losses.

Give my office a call at (470) 235-7868. Planning for the unthinkable is just that – a plan. It’s better to have a plan in place and never have to use it than to be faced with a tragedy and leave your children not only without parents, but also without the love and care you want them to have.

Looking to find an experienced estate lawyer in the Georgia area who is skilled in asset protection and estate plan preparation? Shannon Pawley is an attorney in Georgia with expertise in estate planning and asset protection. Shannon can provide assistance with creating an estate plan to include making a will and how to establish a trust properly. If you have questions about asset protection or questions about making an estate plan, reach out to Shannon and she will be glad to help answer all the estate planning questions you might have!