Especially for younger couples who have minor children, you may believe that creating an estate plan serves no purpose. You may not have built up a large amount of money, you may not have a lot in your retirement accounts, and you may not own expensive property. However, even when you only have a few items of worth, you will want to consider creating an estate plan, especially if you have minor children. An estate planning attorney, like an estate planning attorney in Sacramento, CA, understands that creating an estate plan may seem like the beginning of the end. However, it is a great way to ensure that your children will be taken care of if you are unable to do so.
How can an estate plan help our minor children?
When estate planning, you are likely referring to a document such as a power of attorney, an advance medical directive, or a will. The latter is one of the most important documents you can create when wanting to take care of your minor children. This can ensure that your assets will be distributed the way you want them to be after you pass away and if you pass away before your spouse that they will have what they need to take care of your children. If, however, both parents die, a will can ensure that your children are still set up and taken care of.
- A will can name guardians. When it comes to who you and your spouse want to take care of your children after you pass away, a will is the place to name them. If in the unfortunate event that you and your spouse die simultaneously and your children are left with no parents, you want to know that the right people are there to step in. A will is just the place to decide who you want those guardians to be. Things you may want to take into consideration are whether certain people live close to your family members, whether they currently see your children often and have a good relationship with them, whether they follow the same religious values that you do, and what their financial situation is. This can help ensure you are comfortable with who takes care of them instead of leaving it up to the state.
- A will transfers assets. When a parent creates a will, they can create a minor’s trust so that certain assets will be managed by a trustee. This trustee can then invest and use these assets for the minor children as long as they follow the guidance of the will. There are many ways that a parent can distribute assets to their children and it is not necessarily when the child reaches the age of adulthood. It can be outlined more specifically in the details of the will.
If you have more information on how you can protect your minor children in your will, please contact an estate planning attorney today.
Thanks to Yee Law Group, PC for their insight into some things you need to consider when estate planning for your young children.