Estate Planning Guide for Parents

As a mom of two young boys, I understand the overwhelming feeling of being responsible for another human being's well-being. We want to ensure our children are always safe and protected, no matter what happens, and be their biggest advocate. One essential step in protecting your children and your assets is estate planning.

Here are some things to consider when creating an estate plan for parents with young children.

Create A Will

The first step in estate planning is creating a will. A will is a legal document that outlines how your assets will be distributed after your passing. It's essential to name an executor, who will be responsible for carrying out the instructions in your will.

Choose a Guardian

First and foremost, you need to choose a guardian for your children if they are under the age of 18. This person will take care of your kids if something happens to both you and your spouse. It's essential to choose someone who shares your values and is willing and able to take on the role of guardian. You can also include instructions in your estate plan about how you want your children to be raised, including their education, religion, and other important values.

As parents, we want to make sure our kids are in the best possible hands. Choosing a guardian can be a tough decision, but it's better to have a plan in place than to leave it up to chance. When choosing your guardian, think about who in your life you not only trust to care for your children but also who has similar values in life to yours and would raise your child in a similar environment to the one you are raising them in. It is typically a relative but does not need to be.

Create a Trust

As a mom, I know how important it is to plan for my kids' future. A trust provides peace of mind that your children will have the financial resources they need to succeed.

A trust is also an excellent way to ensure your children are taken care of financially. It allows you to set aside funds for your children's care, education, and living expenses. You can also specify how the funds will be distributed to your children and when. Overall, trust is a power estate planning tool and while it can seem intimidating, it is very family friendly and can help protect generational wealth for a family.

Get a Power of Attorney

A power of attorney is a legal document that designates someone to make financial and legal decisions on your behalf. It's crucial to have a power of attorney in place, so someone you trust can make decisions if you're unable to do so. You can plan for a medical power of attorney as well as a durable power of attorney. These are both helpful in cases where you were unable to make your own medical or financial decisions on your own and needed others you trusted to help make those for you.

As parents, we want to make sure our kids are always protected, and a power of attorney is one way to ensure that happens. Ultimately, the medical power of attorney and financial power of attorney help ensure you and your children’s lives continue to operate as normally as possible if you were to become incapacitated and unable to care for your children.

Review Your Estate Plan Regularly

It's important to review your estate plan regularly, especially after major life events like the birth of a child, divorce, marriage, or the death of a loved one. Updating your estate plan ensures that your wishes are always reflected accurately. As your children age, you may want to change how their inheritance is distributed to them. This also includes reviewing your beneficiary designations for your 401k, IRA, and bank accounts.

Conclusion

Creating an estate plan might seem like an overwhelming task, but it's the best way to protect your family and your assets. As parents, we want to ensure our children are always safe and protected. By choosing a guardian, creating a trust, getting a power of attorney, designating a healthcare proxy, and reviewing your estate plan regularly, you can do just that.

If you need help creating an estate plan that meets your specific needs and requirements, don't hesitate to speak to an estate planning attorney. As a mom and a lawyer, I understand the importance of protecting your family and can help you create an estate plan that gives you peace of mind.