When starting a family and adjusting to life with a baby or young children, between diapers, bottles, daycare, and sleep regressions, putting together an estate plan often falls by the wayside. It is never easy to think about your own mortality, but putting together a comprehensive estate plan will help protect your family in the event of your death or incapacity. Next time you are scrolling through social media during a 3:00 a.m. feeding, consider these reasons why it is crucial to put together a comprehensive estate plan as a parent with minor children.
1. Name a Guardian for Minor Children
One of the most important reasons to put together a Will or a Trust is to name a Guardian for minor children in the event something happens to both parents. The person or people you name as Guardian will take care of your children and manage all their needs including shelter, education, food, and day-to-day activities. The Guardian will also manage your children’s finances. Although a court proceeding is still necessary to officially appoint a Guardian, if you die without an estate plan naming a Guardian for your children, the Court may appoint someone you would not have chosen.
2. Decide How Your Money is Used
In addition to naming who is going to manage your children’s finances, your estate plan can direct how to use those funds should both parents die or become incapacitated. Both Wills and Trusts contain language which instruct the Executor or Trustee, respectively, how to use your funds for the benefit of your children and at what point your children can have access to the funds outright. You can custom tailor this for your family’s interests and values by setting out funds to pay for things such as higher education, religious school, music lessons, camp, etc. Properly drafted estate planning can provide financial protection for your children in the same manner that you would do if living.
3. Plan for Your Incapacity
Not only is estate planning critical to plan for your children in the event of your death or incapacity, but it is also equally important to have a plan in place for yourself. Powers of Attorney for Property and Powers of Attorney for Health Care both name an Agent and Successor Agent to manage your finances and medical decisions, respectively, in the event you become disabled or otherwise incapacitated. While your Will or Trust names a Guardian to take care of your children in the event of your incapacity, your Agent under the Powers of Attorney will handle your finances and medical care. Without valid Power of Attorney documents in place, your loved ones will need to petition the court to name a Guardian to manage your finances and medical care. The Court-Appointed Guardian may not be who you would have chosen while you had capacity. Additionally, if you are incapacitated and there are young children in the mix, having to file for guardianship of you, as well as for your minor children, will make a stressful experience even worse for family and friends.
While planning for your death or incapacity might not be your first priority with a new baby or young children, completing your estate plan can provide peace of mind that your family is protected should the unthinkable happen.
If you have questions about estate planning, please contact attorney Lauren Kaplan at lkaplan@curlerlaw.com or (312) 952-1077 for a free consultation.