A Trusts and Estate Lawyer Talks About the Need for an Estate Plan for Young Families
Becoming a new parent is an amazing experience, but it can also be overwhelming. One of the things you need to think about as a new parent is estate planning. Estate planning may not be the most exciting thing to think about with your family. But, it’s important and can help ensure your children are taken care of if something happens to you. So what is an estate plan and why do young families need it? Read on to find out.
What is Estate Planning?
Estate planning is the process of creating a plan for what will happen to your assets after death. This includes things like your house, your bank accounts, your investments, and any other assets you have. And your estate plan also includes making arrangements for who will care for your children if something happens to you.
Why Do You Need Estate Planning?
Estate planning is important because it allows you to control what happens to your money, real estate, personal property, and minor children after you die. If you don’t have a plan, the state will decide how your assets will be distributed. This may not be how you would want them to be distributed.
Additionally, if you have young children, it’s important to make arrangements for who will care for them if something happens to you. Without a plan, the state will decide who will care for your children, and they may not go to the person you would want them to go to.
Making an estate plan can be a difficult and emotional process, but it’s important to do it. It will give you peace of mind knowing that your children and your assets are taken care of if something happens to you.
What Are the Different Types of Estate Planning Documents for Young Families?
There are several different types of documents that can be used in an estate plan. The most common ones are wills, trusts, powers of attorney, and health care directives.
A Minnesota will is a document that states how you want your assets to be distributed after you die. Under Minnesota law, a will is where you choose the person you wish to appoint as guardian for your minor children.
A revocable trust is a legal arrangement in which you transfer ownership of your assets to another entity (e.g. the trust). The trust provides instructions to your trustee on how to handle matters if you die or are incapacitated. A Minnesota living trust avoids probate so is a valuable tool in an estate planning attorney’s toolbox. You will also need someone to handle matters on behalf of your minor child. This is where a trustee or trust protector are handy since a minor can’t manage her own affairs.
A power of attorney is a document that gives someone else the legal authority to make financial decisions on your behalf. This can be helpful if you become incapacitated and are unable to make decisions for yourself.
A health care directive is a document that states your wishes for medical treatment if you are unable to make decisions for yourself. This is used to appoint a health care agent to make medical decisions on your behalf.
These are just some of the documents that can be used in estate planning. You should talk to an attorney to find out which documents are right for you.
How Young Families Can Start Estate Planning
If you’re ready to get started with estate planning, the first step is to speak with an estate and trust lawyer. It may help to gather any relevant financial information you wish to share with the estate planning lawyer. This includes things like bank statements, investment statements, property deeds, and insurance policies. While this information is not necessary to start the process, the more you provide the estate and trust attorney the more she can design a proper estate plan for your unique family.
No matter how you create your plan, the most important thing is that you have one in place. Estate planning may not be the most exciting thing to think about, but it’s important for you and your family. If you have any questions about estate planning, or if you need help getting started, call me today. I can help you create a plan that meets your unique needs.