Estate planning isn’t just for seniors. Young families can also benefit from having this type of plan in place. In case of a sudden accident or illness, parents can still take care of their young children through a guardian even after they pass away. Even if you don’t expect to pass away anytime soon, setting up an estate plan as early as now can spare your loved ones from making tough decisions in the event of your untimely death.
It’s never too early to start creating an estate plan, especially if you have a young family.
Knowing what to put in your estate plan
The reality is that you aren’t guaranteed to live forever. In case of your untimely death, your minor children may need arrangements made for them. As such, it’s important to include the following things in your estate plan:
- Guardianship designations for your little children
- Trust to protect your assets and provide for your children’s future needs
- Plan for the possibility of incapacity or disability, including creating a power of attorney and health care directive
When creating your estate plan, it’s crucial to consider any potential estate and gift taxes. While the legal aspects of estate planning may seem complex, working with an experienced professional eases the pressure of creating a plan that covers all the necessary legalities to protect your children.
Review and update your plan every now and then
Your estate plan must not stay as it was when you first created it as a young family. Certain things occur that may require you to change up your plan, such as:
- Change in children’s needs and abilities as they get older
- Change in state laws
- Significant life events like having a new baby or getting divorced
It’s important to review and update your estate plan on a regular basis to keep up with these changes. Checking in on your will at least once a year can ensure that it still reflects your wishes and your family’s needs.