Estate Planning Considerations for Your Growing Family
If you have recently welcomed a new family member, you are not alone. July through October is the busiest time of year for births, and many of the most common birthdays are during the summer months.
When welcoming a new child into your home, you have a lot to consider. Amidst baby-proofing your home and managing your new daily routine, it is also important to think about the future. If you have an estate plan, it is time to update it. If you don’t have an estate plan, it is time to put one in place.
Estate Planning Serves a Wide Range of Purposes
Many people view an estate plan as something they only need later in life. But, this is not the case. There are several reasons to have an estate plan regardless of your age, health, and financial status—and this is especially true when you have a child.
Here are some key estate planning considerations for parents with growing families:
#1 Planning for Your Child’s Needs
Creating an estate plan can help ensure that your child’s needs will be met in the future. By appointing a guardian, you can make sure that you know who will take care of your child should you be unable or unavailable to do so. If your child has special needs, you can use the estate planning process to help manage the long-term financial costs of your child’s care.
#2 Planning for Your Own Incapacity
We face more health risks as we get older. This is a fact of life. By incorporating healthcare directives and powers of attorney into your estate plan, you can make sure that you remain in control (or someone you trust steps in) in the event that you are no longer able to make important decisions for yourself.
#3 Protecting Your Hard-Earned Assets
The estate planning process provides opportunities to protect your hard-earned assets both during your lifetime and for your child after your death. This includes both shielding your assets from potential third-party claims (i.e., if you were to cause a serious car accident) and avoiding unnecessary tax liability.
#4 Providing Certainty for Your Family
Having an estate plan provides certainty for your entire family. From making decisions about your (or your child’s) care in the event of incapacity to managing your estate after death, your estate plan will provide much-needed solace and peace of mind when necessary.
#5 Avoiding Unwanted and Unintended Consequences
If you don’t have an estate plan, then judges, doctors, and your family will need to make decisions without knowing what you would have wanted. This can lead to unwanted consequences, as the laws that apply in the absence of an estate plan rarely reflect individuals’ wishes.
Likewise, now that you have a new child, if you already have an estate plan, your old plan may have unintended consequences. To ensure that your estate plan appropriately reflects your growing family, you should sit down and review your plan with an experienced estate planning attorney.
Schedule an Appointment with an Estate Planning Attorney at Rendigs
The estate planning attorneys at Rendigs help parents address their families’ needs and meet their long-term estate planning goals. To schedule a confidential consultation, please call 513-381-9200 or contact us online today.