Many people believe that only older adults or wealthy people need an estate plan. However, everyone needs estate planning regardless of age or existing assets.
Preparing for the future is especially crucial for families with young children.
Selecting a guardian for your children
While your death is unlikely if you are young and healthy, accidents can happen. You need a plan for your children’s care in the event of unplanned events. If you die without formally naming a guardian, the California courts choose one for you. In your absence, the court does not know your preferences regarding who raises your children.
Securing your children’s financial well-being
You may feel that you do not need to plan your estate if you have modest means. Regardless of your fiscal status, you need a plan to ensure your children’s monetary security following your death. Some vital estate planning steps include choosing a life insurance policy for your family and appointing a trusted executor to manage your assets for your children until they are adults.
Creating a living will
A living will detail the specific types of medical treatment you want to receive if you become incapacitated. You can state your preferences regarding care practices such as ventilators, artificial nutrition, and resuscitation. You can also select a medical power of attorney to make decisions for you.
Appointing durable power of attorney
In a durable power of attorney document, you name a person you trust to make financial decisions for your family if you cannot do so due to an illness, accident, incapacitation or other circumstance.
Young families must take the necessary steps to prepare for their children’s future in many ways. Estate planning allows you to have control over what happens if unexpected events occur.