5 Estate Planning Tips for Young Families

When many think of the estate planning process, it’s common for them to primarily associate it with older, newly retired individuals. However, this isn’t the only demographic that benefits from a proactive approach to managing their estate. Those just starting a family can also enjoy the advantages of filing estate planning documents, many of which are specially designed to protect their children’s future. Here are some estate planning tips for young families to know.

Start With the Basics: Wills vs. Trusts

Before you start filing estate planning paperwork, it helps to know exactly what your options are. A will is a collection of legal documents that involves organizing and designating your assets for distribution following your passing. A will also appoints an executor who is responsible for executing your will. On the other hand, a trust allows a third party to hold your assets on behalf of your beneficiaries and dispense them as your children come of age. Talk with a legal professional to determine which one would be better for your circumstances.

Consider Adding Life Insurance to Your Estate Plan

Regardless of your age, tragic accidents can happen and leave your family unprotected and unprovided for. Because of this, young parents with children should consider adding life insurance to their estate plan. Life insurance can ensure that your children are financially supported in case of your untimely death. Life insurance can also help pay for debts and funeral expenses.

Appoint Guardians for Your Children

Should you pass on, it’s important that you have a plan in place for the guardianship of your kids. This is one of the most important decisions for young families to make when it comes to estate planning. Appoint a guardian to take care of your children in your absence. Ideally, this is someone you know well who has the means to care for your kids and is trustworthy and responsible.

Plan for Disability

Estate planning is not only about preparing for an unexpected passing; it’s also about planning for disability. To prepare for the possibility of disability, consider setting up a durable power of attorney and a healthcare proxy. A power of attorney will allow someone to manage your finances on your behalf in case you become incapacitated. A healthcare proxy will allow someone to make medical decisions for you.

Keep Your Estate Plan Up to Date

Another estate planning tip for young families to keep in mind is that this process isn’t a one-time event—it is an ongoing process. As your family and financial situation change, you should update your estate plan accordingly. Keep in mind that laws and regulations related to estate planning also change frequently, so consult an attorney as needed to ensure that your estate plan meets all applicable requirements.

Estate planning should be a top priority for young families. While the process may seem intimidating, it’s important to remember that estate planning is not something you need to do alone. Vancouver Wills and Trusts’ wills and trusts attorney in Vancouver, WA, is a great resource for anyone wanting to organize their assets and protect their loved ones. Reach out today to learn more.