Although it can be very difficult to contemplate passing away while your children are still young, it is important to plan for the unlikely scenario. Doing so will give you peace of mind because you will have the knowledge that your children will be protected and cared for in the way that you see fit.
Estate plans made around young children should address the children and their current age, but they should be updated through the years to mirror your child’s age and maturity. The following are some key things to address in your estate plan.
Naming a guardian for your children
You should always name a guardian in your estate plan whom you would want to care for your children in the event that neither parents are able to. This is usually addressed within a parent’s Last Will and Testament.
Creating a plan to manage your children’s inheritance
If you do not put a plan in place for your child’s inheritance, the court will choose a custodian to manage the money until your child reaches the age of 18. After this time, your child will receive their inheritance in full. Many parents want to ensure that their children do not receive their inheritance in full, and by creating a trust, they will be able to tailor the way in which the child will receive their inheritance over time.
If you are starting to approach the topic of estate planning as the parent of young children, it is important that you take the time to understand all aspects of the law. Estate planning can be complex, but by being patient, you will be able to make it work for you.