Becoming a new parent is an exciting event that brings new experiences and new emotions. When starting a family, financial priorities can change. Between raising children, buying a home, building savings, and managing everyday responsibilities, planning for unexpected events can fall to the bottom of the list.
Yet estate planning is much more than deciding what happens to your property. An intelligent plan plan can identify who should care for your children, who can manage finances if you become incapacitated, and how assets should be preserved for your family.
This estate planning checklist covers several important steps young parents should consider.
Take Inventory of Your Assets
Start by identifying what you own and how it is titled. Your list might include bank and investment accounts, retirement benefits, life insurance, business interests, your home, and valuable personal property.
This is the time to review beneficiary designations because certain assets may pass according to those designations instead of following instructions in a will.
An estate planning attorney can help families understand how these pieces fit together into a coordinated plan.
Choose Guardians for Minor Children
Choosing potential guardians for your children can be the most important estate planning decision you make.
A will, as part of your estate plan, allows you to nominate the person or people you would like to care for your minor children if you die. However, a will does not address who would care for your children if you were still alive but temporarily or permanently unable to care for them.
A comprehensive estate plan can also include documents and arrangements that address your children’s care during your lifetime, such as if you become seriously ill or incapacitated. Planning for both situations, including naming backup guardians, helps ensure your wishes are known and gives your loved ones important guidance during difficult circumstances.
Create or Update Your Will
A will provides instructions for administering your estate and allows you to nominate guardians for minor children. Without a valid will, Massachusetts law generally determines how assets are distributed.
Working with a will drafting attorney can help ensure your will reflects your current family circumstances and coordinates with the rest of your estate plan.
Consider Whether a Trust Fits Your Family
Young parents sometimes assume trusts are only appropriate for wealthy families. In reality, trusts can serve several planning purposes.
For example, a trust may provide instructions for managing assets for children who are too young to handle an inheritance yet. If a trust is set up and funded correctly, it can keep your assets out of probate.
A trust attorney can explain whether a trust makes sense for your family’s assets and goals.
Plan for Incapacity
There are a few important documents to know about when considering how to handle legal matters should you ever become unable to do so yourself. The first is the power of attorney document. A durable power of attorney lets someone you trust handle your money and legal paperwork. The second, a health care proxy, names a trusted someone to make health care decisions.
A power of attorney lawyer can help coordinate these documents with your broader estate plan.
Review Your Plan as Your Family Changes
Estate planning is not something to complete once and forget. A new child, home purchase, marriage or divorce, business venture, inheritance, or significant financial change can often be a reason to review your documents.
At Intellestate Law, estate planning is approached as an ongoing process designed to give families clarity and confidence as life changes.
Protect What Matters Most. Engineer your peace of mind.
Disclaimer: This article is provided for general educational and informational purposes only and does not constitute legal advice. Estate planning needs vary based on individual and family circumstances. Consult a qualified Massachusetts attorney regarding your specific situation.
