As a parent, one of the best things you can do for your kids is to plan for when you are not there. Estate planning is something that many parents have a hard time talking about. No one likes to think that they will not be here for their children. However, one of the best things you can do for your children is to have a plan for the future that will protect them in case you cannot.
Why Do You Need an Estate Plan?
You may be reading this as a young, healthy adult parent and think this must not apply to me, but it does. An estate plan is primarily for your children. Young or mature, an estate plan helps your family to navigate your estate after you are gone.
An estate plan is not only about doling out your property after you are gone, it is also a plan for who will take care of your underage children. For older adults with grown children, an estate plan helps to take the burden of decision-making off their shoulders.
At A Minimum Every Parent Should Do This
It is highly recommended that as soon as you become a parent you meet with an estate planning attorney to draw up the necessary documents to protect your child. Once you have your initial estate plan in place, you should revisit it every five years to update it. Of course, if there are any life events like a divorce, new marriage, or a big move to another state, you will need to revisit the estate plan sooner.
Here Are the Three Things You Should Know About Estate Planning
There are some misconceptions about estate planning that can be dispelled by understanding these three things:
- Estate planning is not only for the wealthy. You do not need to have a certain level of wealth to create an estate plan.
- There are planning tools that can save your estate money.
- Estate planning can protect your children.
One of the most common misconceptions is that you have to be in a certain income bracket to use estate planning tools. The fact is anyone can use estate planning tools to protect their family. There are many tools like trust deeds that will not only save your estate money but that will also generate a return of about 10%. Estate planning is a part of sound financial planning.
The Simple Tools
There are several key components to estate planning but none is more important or simplistic as a will. A will not only designate your beneficiaries and how your estate should be divided, but it also allows you to appoint a guardian for your children. It is an essential tool in any type of estate plan.
Another tool that is highly relevant in the estate planning process is the Power of Attorney. This tool is especially important for mature parents. It is estimated that about 75% of seniors have at least a single chronic condition that impacts their health, with many having two or more chronic conditions that impact their health. A Power of Attorney can assign someone (family or others) as a person that can make MVP health care choices for you when you cannot.
Of course, you do not have to be a senior to appoint someone as a POA to manage your health care. If you cannot, anyone can take advantage of this tool. An attorney that specializes in estate planning can create a plan to meet your personal needs.
Do It For the Kids
Being a parent comes with a lot of responsibility, and no real end date. Whether you are a new parent or a mature parent with grown children, it is important that you take steps to protect the future of your estate. Estate planning will provide you with peace of mind knowing you have planned for the future, so you can focus on living your best life today. Learn more about estate planning and how it can help your family.
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