Estate Planning for Parents of Minor Children
When people think about estate planning, often they think about elderly folks who are getting affairs in order so that if they become incapacitated or when they pass away, their assets will pass on to their heirs as efficiently and appropriately as possible. However, one of the most important roles an estate plan plays is in setting up affairs for parents of young children.
For some, the idea of an estate plan as a young couple can seem premature and more than a little overwhelming. After all, hopefully everyone has their health and their whole lives ahead of them. Also, as a parent of young ones, I know there are always fifty things on the short-term to-do list. When are you going to find time to sit down with a lawyer?
That’s where Wakefield Law comes in. Our family-oriented firm is all about serving you, where you are, and in the time you have available. We move at your speed and have a tried and true process to meet, set up critical action items, and get the plan you need in place.
What Documents Do Parents of Minor Children Need?
WILL
First and foremost, parents need Wills. Sure, this may seem obvious, but it’s actually incredibly important. Wills do a couple of things. One is to pass your earthly possessions onto your loved ones. While that’s an important function of a Will, it’s probably not at the top of your mind when you are at this stage in life. Importantly, a Will also allows you to name a guardian for minor children. This is where estate planning documents are most necessary. If something should happen to you, who will care for your baby? Without a Will, the court will make that decision on your behalf, and they might not make the same choice you would. A properly executed Will allows you to name first, second, and third-choice guardians who can step in to care for your child, if the need should ever arise.
TEMPORARY GUARDIAN DESIGNATION
You can also use your estate plan to name temporary guardians. Naming temporary guardians happens outside of the Will, and allows you to name one or more individuals who live nearby and should be called upon to care for your child immediately. If your appointed permanent guardians do not live nearby or aren’t immediately available, children can end up in state or police custody until the permanent guardian becomes available.
ADVANCE MEDICAL DIRECTIVE
In addition to the health and wellbeing of your child, your estate plan should provide for your own health and wellbeing, too. An Advance Medical Directive is a set of documents that allows you to state your medical preferences, name a healthcare proxy, designate individuals who are entitled to speak with your healthcare providers about your condition, and specify any end-of-life wishes. Without these documents in place, even temporary incapacity due to illness or injury can become a nightmare. By taking the time to lay out your wishes and necessary permissions in your advance medical directive, your loved ones will be able to seek care on your behalf unencumbered.
POWER OF ATTORNEY
When the unexpected occurs, who is empowered to take the wheel? Who can make sure the bills are paid, the house is cared for, and the business is up and running? Your Power of Attorney allows you to name a financial agent who is entitled to make financial, business, and legal decisions on your behalf. If you are temporarily or permanently incapacitated, Power of Attorney is absolutely essential.
REVOCABLE LIVING TRUST
How will you preserve your assets to ensure your child and partner are cared for in the future? Who will oversee the distribution of your assets? What kind of controls can you exercise that will protect your child long into his or her future? Sounds like a job for a Revocable Living Trust. Unlike a Will, which simply states who should receive what and then is executed through the probate court process (which can be long and costly), a trust allows you to transfer assets to loved ones outside of a court setting efficiently and privately. With a properly created and funded trust, it is possible to avoid the probate process altogether. When you create a trust, you are able to exercise far more control over your assets. Trust instructions state to whom, when, in what amounts, and for what purposes assets can be distributed. For example, don’t want your child to inherit your entire estate when he or she turns 18? A trust may be the answer. You can specify trust instructions that provide for your child’s healthcare, education, housing, travel, all without the interference or oversight of the court.
Young parents get advice from all corners, and it can seem like it’s impossible to address everything, but making sure your family, including your young ones are taken care of no matter what occurs is a goal worth prioritizing. Give us a call at 703-771-9740 to schedule a free consultation that works with your schedule – my clients always say they feel relieved when we finally sit down to address these potentially daunting matters.