Estate planning is an essential process that every parent must complete. As a parent with young children, you must consider how your children will be taken care in the event something should happen to you. Who will raise them? Who will manage their money until they reach a mature age? What if your children are over the age of 18 – do they have documents in place that allow for you to help with financial affairs and check in during a time of emergency? In this blog post, we will explore why estate planning is crucial for all parents.
Protecting Children
One of the most critical reasons why estate planning is essential for parents is to ensure that your children are protected. Estate planning enables parents to appoint guardians for their children, should something happen to both parents (this is the person that will physically raise the child). This is particularly important for single parents or blended families, where there may be different opinions on who should take care of the children. You can also select a different person that will manage the child’s financial affairs (this is the trustee – see more below).
Estate planning can also help to ensure that your children receive their inheritance at an appropriate age. If children inherit a significant amount of money at a young age, it can be challenging to manage and could potentially be harmful to their long-term financial wellbeing. Estate planning allows parents to set up trusts that specify when and how their children will receive their inheritance. You can even build in milestones such as graduating from college.
Avoiding Probate
Probate is the legal process by which a deceased person’s assets are distributed (this is appropriate when the person who died owned assets solely in their name). Probate can be a lengthy and expensive process, particularly if there are disputes among family members or creditors. It’s also a public process, meaning anyone can look up the case online and see what is going on. Estate planning allows you as a parent to structure your assets in a way that can avoid probate, making it easier and less expensive for your children to inherit (and avoiding the public eye).
Ensuring Wishes Are Honored & Peace of Mind
Estate planning allows you as a parent to specify how you want your assets to be distributed after your pass away. You have control from beyond the grave and the peace of mind knowing that your legacy is being carried out in a way that you deem appropriate. Knowing that your children are protected, your assets are distributed according to your wishes, and your tax liability is minimized can provide you as a parent with significant peace of mind. Estate planning can also provide peace of mind for adult children, who can be assured that their parents’ affairs are in order!
We take great pride in helping you create your perfect plan that accomplishes all of your wishes. Call us today to schedule a strategy session. (954) 999-9683
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