STEVE RIDZON
PHOTO BY STEVE RIDZON
Laura Curry, Managing Attorney
By Laura Curry, Managing Attorney
Many young families put off estate planning, often believing they’re too young, healthy, or that they can’t afford it. But the truth is, estate planning is critical for young families precisely because others are depending on them. Even a healthy, young adult can face sudden tragedy due to an accident or illness, making it essential to have a plan in place. If you’re recently married or have welcomed your first child, you’re in an exciting life phase, but it’s also a time for making important, proactive decisions that bring peace of mind for the future.
Estate planning is about securing the future for your family if the unexpected happens. It involves more than just a will; it’s a comprehensive plan that ensures your loved ones are cared for and that your wishes are honored. Key elements of a strong estate plan for a young family include naming someone to manage your estate, selecting a guardian for minor children and an individual who will manage their inheritance until they reach adulthood.
To help you navigate this process, here are four essential steps to consider when planning as a young family.
1. Choose a Trusted Executor or Trustee
The executor or trustee of your estate is the person who will carry out your wishes and ensure that your plan is executed smoothly. Selecting someone reliable and competent is critical, as they’ll be responsible for managing your estate. It’s also wise to name one or more successors in case your first choice is unable to fulfill the role due to incapacity or other circumstances.
2. Select a Guardian for Your Children
Perhaps the most important decision for parents is choosing a guardian for their children. This person will become the legal guardian, and caregiver should both parents pass away or become incapacitated. You should consult with the person to ensure they would be willing to take on such a huge responsibility and choose someone with all the resources necessary to provide the lifestyle you would want for your child in this situation.
Also, designate either this person or someone else to manage the inheritance your child receives. Creating a trust will avoid any confusion as to what your children inherit, when they inherit and even what purposes they can use their inheritance on (health, education, etc.)
3. Review Your Life Insurance Policies
A life insurance policy can provide immediate financial support, covering funeral costs, outstanding debts, and income replacement to help your family maintain financial stability. Make sure your policy is large enough to cover all these needs and provide ongoing support for your loved ones.
4. Plan for Incapacity
Accidents happen, even to the young and active however most accidents are not fatal. Plan for incapacity by preparing a financial power of attorney and medical power of attorney. A power of attorney allows someone to make financial or medical decisions if you are unable to do so. Appointing a trusted family member or friend to act in your stead is essential for items that involve paying your bills, managing your accounts, and making medical decisions for you.
As a young family, you can probably think of a million things you’d rather do than tackle the difficult questions that surround estate planning but think about the alternative: the court making the decisions for you, especially when it comes to your children. Once your plan is in place, it should be reviewed and updated every three to five years or if there are any significant changes to your family, health, or wealth.
If you’re ready to get started on creating a plan for your family, contact the experienced attorneys at Sinclair Prosser Gasior to discuss your estate planning needs today.
Sinclair Prosser Gasior Estate Planning & Elder Law Attorneys 183 Harry S. Truman Parkway, Suite 104 Annapolis, Maryland 21401 (410) 573-4818 | www.spgasior.com
Offices in Annapolis, Bowie, Columbia and Waldorf
