Creating an estate plan as a young family with children
You may believe that you don’t need to worry about planning your estate when you are just starting your family, but that could be the best time to begin. You may believe that your lack of assets prevent you from properly planning and you may not need to create one yet. However, if you have children, they are the reason that you should begin planning now in case you pass away suddenly. There are many things to consider when planning with your children in mind. Here is a short list of considerations to keep in mind while beginning your planning.
Who do you want to take custody of your children?
Perhaps the most important reason to create a plan at this stage in your life is to establish a legal document with a designated guardian for your children should you pass unexpectedly. It is difficult to think about, but important to sort out before your family has to decide amongst themselves. In many ways it is preferable to have a decision ready instead of leaving it to the court who doesn’t know your family well.
Without a plan, your family may have issues deciding how to place your children. If you plan this in advance, then your wishes will be respected and it will prevent a possibly lengthy and emotional custody battle.
Naming an Asset Manager
Typically, whether you have a will or not, your assets will be inherited by your children and it is important to designate someone who can manage the money for your children until they come of age and can take over. If you do not have a plan, the state will manage them. The court must be petitioned to release funds before the children come of age which can be inconvenient and timely.
When Do the Children Receive the Assets?
You may go with the popular 18 years old, but you may opt to go with the older and wiser age of 21 when your child is a bit more mature and adult. However, this is a personal decision and is up to you, you do not have to choose either of these ages if you don’t want to. Some people decide that they want to wait until their children are married so they can help support their own young families. As long as you set up an estate plan with all of your designations and beneficiaries, you will not have to worry about your family and you may change it as needed.
Creating an estate plan can be intimidating. It is best that you consult an experienced living trust or estate planning attorney such as the estate planning attorney Phoenix locals trust who can walk you through the process. They will ensure that your assets and last wishes are protected and honored for your children. If you have started your family, consider beginning your estate plan to protect your loved ones.