Why New Parents Need an Estate Plan
Sept. 22, 2021
While changing diapers, you’ve probably already given thought to how to pay for your child’s education. And you will likely search social media for info on the new babysitter who will watch your child for a few hours Friday night. So why not prepare for the worst “what if” scenario of all? No one wants to imagine what might happen. The last thing you want is someone you don’t know or trust raising your precious youngster. So, it’s not only wise but also responsible to think through and make a solid plan.
Here are major questions to consider when protecting your child’s future…
Who Will Care for Your Child?
This is perhaps the most important consideration. Although it is painful to imagine your child raised by someone else, a suitable guardian for your minor child is crucial. Will it be a close relative? A close friend? Or a neighbor with whom you share a spiritual bond? You and your spouse must agree on a designated guardian who also must be willing and able to accept the great responsibility you are bestowing.
How to Ensure Your Child Will Receive Your Estate Assets?
Young families tend to procrastinate estate planning because their assets seem too small to warrant protection. But no one knows what the future holds. A seemingly trivial investment account today may pay off hugely in a decade, or the payout from the life insurance provided by your employer may be unexpectedly significant. In a family with multiple children or blended families, a good estate plan can soften the grief and anxieties that otherwise can drive relatives apart, because it enables preserving the parents’ intentions and distributing the child’s inheritance accordingly.
When Your Child Will Get the Assets?
Without an estate plan, your assets will probably endure probate before your child gets them. In Georgia, probate takes six months to a year, possibly longer, depending on the circumstances. With a comprehensive estate plan in place, however, you can avoid probate altogether by controlling when and how the principal from the estate can be distributed. For instance, you can designate that a lump sum be disbursed when your child reaches the age of majority; or, release one-third of it when he or she is 20, another third at 25, and the last third at 30 or 35 years old.
Ready? It’s Easy to Get Started!
Contact my office to set up a free consultation. With my wealth of experience in this field, I will help you plan your estate, protect your family, and preserve your legacy.
We all know the importance of teaching our children leadership and decision-making skills.
One proven way is to let them practice their power of choice. For instance, try presenting a list of 5 chores the family must complete. Let them select one, two or three (depending on age) and let them also assign the rest to the adult family members. This strategy puts your children in the driver’s seat, validates their voices, and promotes the family as a team effort. And, work gets done!