Even a healthy, young adult can be suddenly overtaken by an accident or an illness.
Most importantly, young couples have the greatest asset of them all: family and children who depend on their support.
The only ones that suffer from a lack of an estate plan or worse, one that does not work (proper formation & funding issues…etc), are the ones you leave behind.
Understanding the consequences of not doing any estate planning is critical.
Parents want to ensure that their kids get their inheritances as quickly as possible. However, in many cases distributions should be delayed, given in non-lump sum payments (to avoid waste, spend, immaturity of the beneficiary(s)), and protect against future dependency issues (such as alcoholism).
Having a child get lose their inheritance because they weren’t ready for it can be devastating. Additionally, parents want to decide who their minor children will live with, and be raised by, in the event of their passing. A prepared parent will want to make these decisions during their lifetime so that a court does not decide for them.
How to plan your estate as a Parent
First, every family is different so understanding your unique situation and goals are essential. Factors that differ among families include their dynamics, asset types including retirement accounts and insurance products, age of their children, and long term issues that could arise for them or their children in the future.
Assets to think about, which can be added to your estate plan over time, include both real and personal property, motor vehicles, some retirement accounts, life insurance policies, bank accounts, and securities.
Once you know your assets, your goals, and other factors, you need to find the right estate planning solutions. A cost effective document from an Orlando will attorney that can be drafted is a Last Will and Testament (also referred to simply as a “Will”). While a Will can list specific bequests for your most prized personal possessions, the greatest value of a Will for young parents is the ability to name proper guardians to care for their children in the event something happens to both parents.
Make sure this document is properly drafted and executed pursuant to all the legal requirements in Florida. If not, it will not be valid on its face and at the very least, any Last Will can be challenged by beneficiaries
Generally, trusts are the most comprehensive instrument to protect your assets and family. The trustee you designate will oversee the process and distribution of your estate.