Estate Planning When You Have Minor Children
Children change your life in an instant. From the moment they’re born, you want to care for and provide for them. Estate planning with minor children requires you to be more diligent and dot the I’s and cross the T’s because you want your child to:
- Inherit the assets you worked diligently to obtain
- Go to a guardian of your choosing that you trust
- Be provided for from your estate
If anything happens to you before your minor child reaches adulthood, the steps that you take can help you have a say in their care even if you pass away.
You can make the transition easier for your child you leave behind with proactive planning.
Why Is It Important for You to Have an Estate Plan If You Have Minor Children?
A recent survey found that only 33% of Americans have an estate plan. If you don’t have a plan in place, this means that Washington, or the state you live in, will have a say in the way that your estate is distributed.
Distribution of real and personal estate follows state law, which depends upon your situation and the character of your property. Community assets go to your spouse. Separate assets go one-half to your spouse and one-half to your children. Concerning children this means:
- Assets are divided equally among children
- Shares depend on the number of children and if you’re married
For example, let’s assume that you have a watch from your grandfather that your son Billy has always admired. You want to pass this item to your son, but you don’t have a will or other essential documents in place.
If the state’s laws are followed, your spouse and existing children can have a right to the watch as well.
Estate planning with minor children allows you to dictate that the watch, or any item you wish, will go to the beneficiary of your choosing. Going a step further, let’s assume that you don’t have a surviving spouse and want your parents to have guardianship of the child when you pass away.
A proper and legal estate plan can name a guardian and any wishes that you have for the child.
If your child has special needs, you can even create a trust that allows you to provide for them without impacting their eligibility for governmental benefits.
We recommend to our clients in Spokane, Tri-Cities, and Seattle that they create an estate plan even if they’re:
- The pinnacle of health
- Married to a healthy spouse
- Young and have a long future ahead of them
If you’re diagnosed with a life-threatening condition or disease or even work in a dangerous profession, an estate plan simply makes the lives of the ones you leave behind easier. The framework that you provide for your minor child can have a lasting impact on them and shape the remainder of their lives.
Addressing children adequately in your plan can be done using multiple estate planning tools that we’ll list and explain below.
What Pieces of an Estate Plan Are Necessary to Address If You Have Children?
Having a comprehensive estate plan will give you and your family peace of mind that they will be cared for and that your wishes will be carried out after your death.
However, if you have minor children, it is especially important to have the following:
A Will
A Will is an essential tool that details how your assets will be distributed after your death.
It also does something that’s very important for parents of minor children:
- Name a guardian. A will allows you to appoint a guardian for your minor children, so if both parents pass away before the child is of age, they will be cared for by a person of trust.
A will can be updated and changed as your life circumstances change, but it will only go into effect after your death.
If you die without a will:
- Your assets will be distributed per Washington’s intestacy laws
- Someone else will be in charge of appointing a guardian for your children
A Trust
In many cases, estate planning for children should also include a trust. A trust is a legal entity that holds and distributes assets to beneficiaries according to your instructions.
Through your will, you can name guardians and give instructions on how to distribute your assets. Then, through a trust and the Trustee you designate, you can manage and distribute those assets to beneficiaries according to your wishes.
Trusts can go into effect while you’re alive or upon your death through your will, and they can continue to operate after your death.
There are many types of trusts, but some are more commonly used in scenarios with minor children. These include:
- Support and Asset Protection Trusts
- Special Needs Trusts
- Education Trusts
Each of these trusts has its own advantages and considerations. An attorney who focuses on estate planning can help you determine which types of trusts would help you achieve your goals.
Durable Power of Attorney and Advance Healthcare Directive
In the event that you become incapacitated or ill, a Durable Power of Attorney and Advance Healthcare Directive (Living Will) can help ensure that your wishes for care are carried out.
These two documents work hand-in-hand.
- An Advance Healthcare Directive outlines your wishes for medical care should you become incapacitated and are unable to make decisions for yourself. Your Advance Directive can be as detailed or general as you want.
- A Durable Power of Attorney names a trusted person as your Attorney-in-Fact and grants them the ability to carry out the instructions in your Advance Directive. Your Attorney-in-Fact may also make other medical decisions on your behalf if you are unable to do so.
Having a Durable Power of Attorney and Advance Healthcare Directive will ensure that if you are unable to make decisions for yourself, someone of trust will be making them for you. While your minor children may not be directly involved in the decision-making, it can make the situation less stressful overall.
Everyone should have an estate plan, but planning becomes even more important when minor children are involved. As a parent, you want to ensure that your children are cared for and provided for as per your wishes.
Drafting a will, setting up a trust (either one during your lifetime or following your death) and getting your Advance Healthcare Directive in order can help you achieve this goal.
When it comes to estate planning with minor children, it’s important to work with an experienced attorney who focuses on this complex area of law. Their knowledge and skill will help ensure that your estate plan will carry out your last wishes and protect your children’s futures.
How Will ELG Estate Planning Draft an Estate Plan That Takes Care of Your Children?
Estate planning with minor children is complex and not something you want to ignore because if the worst happens, you can’t go back and fix it.
We make the process as simple and pain-free as possible. Our process involves:
- Meeting with a member of our team
- Outlining your needs and goals
- Recommending a flat fee plan that aligns with your goals and needs
- Signing of all documents
- You picking up your estate planning notebook
Our team has been helping clients throughout Washington, since 2006, create estate plans that protect their children and beneficiaries. If you have minor children or one is on the way, it’s the right time to create or modify an estate plan.
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