Essential Estate Planning documents that can provide great peace of mind for young families are as follows:
1. Nomination of Guardianship
By having a well thought out nomination of guardianship, you can identify and spell out who you would like to raise your children in the unfortunate event that you are unable to do so. A tailored nomination of guardianship, enables you to spell out exactly how you would like your child to be raised, what school they will attend, what values they will be brought up with etc. By having this document in place you are ensuring that your children will never be to subject to foster care nor will the court nominate someone to care for your children, without knowing your wishes.
2. Trust for Child’s inheritance
If the parents have no estate plan in place and if both parents pass on leaving minor children, the court will appoint someone to look after the children’s inheritance. This individual will most likely be a stranger and will cost money. The minor children will receive all the inheritance that was available to them outright at 18. The inheritance is distributed to the 18 year old without consideration for the teenagers ability to manage money or otherwise. Most parents would prefer that their 18 year old son or daughter not have unfettered access to potentially large amounts of money for fear of squandering. By have in place a trust you can outline and identify what, when and in what method you would like your children to inherit.
3. Life Insurance
Life Insurance can offer great peace of mind that your family will not struggle financially upon your passing. Life Insurance is a valuable asset that all families should consider as it can provide the resources to pay off debts, creditors, funeral expenses etc., along with ensuring a standard of living for the people you leave behind.
These 3 Estate Planning tools are not dispositive and there are many other Estate Planning documents that can be put in place for great reason. However it can be safely said that having in place a Nomination of Guardianship, a vehicle through which your children’s inheritance be distributed at various intervals and by having life insurance, you can rest assured that you have a positive say in what happens to your young family in the event that you cannot look after them.