Estate Planning Considerations When You Have Young Children

Families with minor children are most especially in need of a comprehensive estate plan to nominate a guardian to care for their children should they become unable to do so. Their comprehensive estate plan will also serve as a means to hold assets for their minor children should both parents pass away.

When Should Families with Young Children Start with Estate Planning?

The best time to start with estate planning is right away, especially if you have or intend to have children. Start now, even if you don’t have children yet. This way your children will be protected as soon as they are born.

Estate Planning Documents Needed for Families with Minor Children

A Will

You need a Will to appoint a guardian to care for your minor children after you pass away. In fact, your Will is the only opportunity you will have to tell a court who you want to be your children’s guardian.

To avoid any issues, both parents should agree on the person to be appointed as guardian. The probate court will give your nomination of a guardian significant weight. However, the court must find that appointing the person who you have nominated is in your children’s best interest.

Life Insurance

Before you make any other estate planning decisions, calculate how much it will take for someone to raise your children, in the manner in which you want them raised, from childhood to adulthood should something happen to you tomorrow. Then you can complement what you have already saved with life insurance.

Also, consider if your spouse will have the liquid assets needed to continue paying the bills and supporting your children if something were to happen to you tomorrow. If not, think about purchasing more life insurance or consulting with an experienced estate planning attorney to learn about other options.

A Living Trust

For parents of minor children, nominating a guardian is only half of the equation. Leaving financial resources to help benefit your children is the other half.

Anyone can become incapacitated or pass away at any time. As the parents of minor children, you need to plan for the possibility that you won’t be there to take care of them. Therefore, provisions need to be made to provide for your children and to protect their inheritance until they reach the age of majority (18).

Perhaps the most efficient way to provide for your minor children in your absence is a Revocable Living Trust that is funded with your assets. The assets will be managed by a trustee who you choose, and distributions can be made on behalf of the children directly or paid to their guardian.

Review and Revise Your Estate Plan as Needed

Once your initial estate plan is in place, make sure that you take the time to review and revise the plan as needed. Although there is no universal consensus on how regularly an estate plan should be reviewed, about every three years is recommended.

For more information regarding estate planning for families with young children, contact a qualified estate planning attorney at (703) 553-2577 or use the contact form on our website to arrange a consultation.

The information on this site is for general informational purposes only. The information presented in this site is not legal advice or a legal opinion. You should seek the advice of legal counsel of your choice before acting upon any of the information in this site.