5 Estate Planning Steps for Young Families
Starting your own family is one of the most transformative events in life. It changes your values, goals and sense of responsibility. As well as sleepless nights and the first milestones, being a parent adds a new urgency to planning for your future. It is important to update or create your estate plan in order to protect your family members if something unexpected happens. The Indianapolis attorneys of Frank and Kraft provide five important estate planning tips for young families. It is more than just a document that directs the distribution of assets. Your Will is the only official way to name a guardian for your minor children. A court will have to appoint a Guardian if both parents die or are unable to take care of their children. A judge will decide who will raise the children if there is no clear legal guidance in your Will. Naming a Guardian in your Will helps ensure that someone you trust, and who shares your values, steps into that critical role.
- Establish a Plan for Managing Your Children’s Inheritance: Minor children cannot legally inherit property or financial assets outright. Parents often use trusts to plan their estates. You can name a person to manage the inheritance of your children by creating a trust. This person, known as the Trustee must follow the instructions that you have set forth in the will. You can choose whether the assets are used for education, healthcare or general support. A trust offers both flexibility and security, ensuring that your children’s financial future is managed according to your wishes and safeguarded from mismanagement or early depletion.
- Prepare for the Possibility of Incapacity: It is difficult to think about becoming seriously ill or injured, but planning for that possibility is essential when others depend on you. Who would manage your finances and make decisions if you suddenly became incapacitated? This concern is often addressed by naming a successor trustee under a revocable trust. You can be the initial Trustee and name your spouse or partner to succeed you. Your chosen successor will automatically take over the role if you become incapacitated without the need for court proceedings. This simple step will help you avoid confusion and delays during a difficult period, and ensure that your family’s financial requirements are met. It can provide financial security for your spouse and your children in the event that you die. Check your existing policies to determine if they are adequate. If you don’t have life insurance or your family has grown recently, it is time to purchase or increase your coverage. You may also want to consider creating an Irrevocable Life Insurance Trust. An ILIT will ensure that the proceeds of your life insurance policy are not included in the taxable estate and can be used to pay for funeral costs or support your children’s needs. You can name an agent to make these decisions on your behalf with an advance healthcare directive. This planning should also include your children. If you are temporarily unavailable to make medical decisions, a limited powers of attorney can be used to authorize a trusted friend or relative to do so. For more information, join us at an upcoming FREE seminar. Contact the Indianapolis estate planning attorneys of
- Frank & Kraft for assistance with estate plans for young families. Call
- (317) 684-500 or
- (317) 684-500 today to schedule an appointment. Read More!
Latest Posts by Paul A. Kraft Estate Planning Attorney
(see all)
