What Every Young Parent Should Know to Protect Their Family
 
Plan before it is too late
Have you considered the painful question of what would happen to your children if you or your spouse died unexpectedly?  This article considers some basic estate planning tools that every young family should implement to protect their children.

Establish who you want to be your child’s guardian if the unthinkable happens
A guardianship provision allows you to appoint a person or persons to take care of your child if you and your spouse become incapacitated or die.  If you have a trust based estate plan, the guardianship appointment usually takes place in your pour-over will. 

 There are a number of factors to consider.  When deciding who to appoint as your guardian think of who you would want to raise your child.  Also, consider what your appointed person would have to do to be able to take over your job.  We recommend that you have a serious conversation with them before making the appointment.  Moreover, consider whether the person you appointed as the guardian of your children lives close enough that they could get to your children in a time of emergency.  If not consider appointing a temporary guardian. 

Finally, you have to make sure that in the case of emergency the medical team knows that you have minor children and home and where to find your guardian information.  This is why I give clients a card to carry with them in their wallets.  A sticker on your drivers license informs emergency medical providers that you have a child at home.  This way your guardian and not Child Protective Services can go get and take care of your children at home.  The medical providers access your information on an internet database using your membership number on the card. 

Appointing a guardian now gives you peace of mind that your children are protected.  It allows you to decide who is going to care for your children and it allows you to set guidelines of what you want for your children in your family mission statement. Not having a guardianship is a scary thought.  Your children could be taken away by Child Protective Services until a temporary guardian comes forward or is appointed by the court.  Also, if you become incapacitated or die and do not have a guardianship in place, the court decides who the legal guardian is in a court ordered, expensive and time consuming guardianship proceeding. 

Create a Revocable Living Trust
A trust also protects your children if you are your spouse become incapacitated or die.  There are many tax, probate avoidance and family legacy planning reasons to create a trust as well.  However, for the young family, having a living trust can also be invaluable.  It can provide money management security for your child and protect that child’s assets from creditors and predators.  You can set a trust for your children that will not only provide them principal to your children for their health, education, maintenance and support, but you can also decide when, by what distribution standards and how much of their legacy they are to have.

Life Insurance to Protect Surviving Family Members
An irrevocable life insurance trust (ILIT) holds your life insurance policy outside of your estate taxable estate. When you purchase life insurance, make sure you are receiving adequate coverage to protect your surviving family members allowing them to live comfortably.

Plan and Protect Now! 
As your estate grows and your family’s lifestyle changes, regularly review your estate plan with your professional advisors.  Creating an estate plan now will ensure your children’s financial well-being if the inevitable or unthinkable happens to you and your spouse. To begin planning your estate, please give us a call at 949.715.4303 or email us at AndersonLawGroup@me.com. We would be happy to help get you started. 

 

 

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