Many young adults assume that they have ample time to set up an estate plan, but this might not be the case if they have children. It is imperative for parents to have plans in place for the children just in case something happens to them. There are several points to consider in these cases.
One of the most important things you can do for your children is to set up a plan for guardianship for them. The person you appoint as their guardian is who will raise them if you and their other parent pass away. Make sure that this is someone who shares similar values as you so that they’ll be taught those in a manner you’d approve.
You may be tempted to name your parent as guardian, but you should think carefully about this. The guardian should be someone who will able to care for the children. Choosing someone around your age might be beneficial since there’s less of a chance that health challenges will prevent them from being able to take care of the kids.
Writing out a will and establishing trusts can also help you provide for your children. These may provide the financial backing the guardian can use to meet the child’s needs. Think about things like life insurance policies and payable-on-death designations as you’re considering this aspect of the situation.
Even writing out your end-of-life plans can benefit the children because your loved ones will have a plan for your care. Be sure you choose the financial and health care power of attorney designees carefully.
All of these decisions must be written out and included in your estate plan. Ensuring it is all handled in a legally valid way can provide you with peace of mind.