You and your partner have recently had a child. Understandably, you’re looking to the future and you have no intention of going anywhere. Despite the common perception of estate planning being morbid, this is far from the truth. Estate planning can be an important part of your future as young parents.
If you’re hesitant about estate planning as a young parent, it may help to look into the potential benefits it can bring. Outlined below are some important factors to consider.
Much of the estate planning process revolves around deciding what will happen to your assets upon your death. By drafting a will, you can pass assets onto your children, including the financial savings that you have.
For younger children, you may find it beneficial to establish trusts. These legal instruments can be very specific to their needs. For instance, you can set up a trust that passes money onto them when they reach a certain age. The money can also be spread out as a regular source of income, rather than being paid as a lump sum.
The needs of the children
Of course, you and your partner provide much more than financial care for your children. You look after them, instill values and help them if they get into any kind of trouble. Who would do this if you weren’t around? Thankfully, this is something that an estate plan can handle.
For instance, in a will, you can name a legal guardian who can take over looking after your kids should something ever happen to you. The guardian can be anyone of your choosing, and you are not limited to only nominating one.
While estate planning can feel overwhelming at first, once you are armed with the information, this feeling will fade. As you take steps for the future, make sure you have legal guidance behind you.