There are many possible reasons why many young families put off the idea of planning their estate. Some do say they are still very young therefore it is not a necessary thing to do now. Others may say they cannot afford the cost involved in estate planning while some others even find it difficult to think about. But the truth is that even a young and healthy person could be involved in an accident or a sudden sickness. Estate planning is of immense importance to every family both the young and old. It is not just for your sake alone, but also for the sake of your family members. They might depend on it.
Coming to realization the importance of estate planning will give you the reasons to do it. Some importance of estate planning to young families include the following
- It can save your family a whole lot of stress and trouble of hiring lawyers concerning your estate if something should happen to you.
- It could also save your estate from going through the probate process while you are gone.
- When you properly plan your estate, at your death your assets will be easily accessible by your family members.
- Estate planning can also help your family reduce or avoid payable taxes on your inheritance.
- It also give you the opportunity to make all the necessary provisions for your minor
Naming a trustee and an executor
The trustee is the person to whom you give right to ownership of your trust for the benefit of the beneficiary. The trustee is a trusted person. The trustee could be a friend, family member, spouse, etc. the trustee hands over the asset to the beneficiary at the stipulated time. Most people use trust as a means of avoiding probate and reducing tax.
The executor is the person whom will make sure your estate is properly shared among your heirs as your will states. He is the one that will go about tax payment, payment of creditors, etc. a secondary executor is also named in case something happens to the primary executor. The executor just like the trustee should be someone you can trust to handle things properly on your behalf when you are no more. He could be a family member, a spouse, etc.
Naming a guardian for young children
It is unlikely for something to happen to both parents at the same time. What is often the case is that one parent either dies or is incapacitated and can no longer care for the children. If this is the case then the other parent will continue to look after the young kids. But in a situation whereby a parent is dead and the other one is incapacitated or both dies, the young children will need a guardian to look after them. This guardian is named in the parent’s will. If there is no named guardian, the court will determine who will look after the kids.
Planning how your assets will be distributed
One major feature of the will is that it entails the testator’s intentions concerning how his assets should be distributed among his heirs when he is no more. The testator states here what he wants each person to get from his estate. He also states if he will be donating part of his estate to charity. Most married couples normally want their spouse to take over their estate at their demise. This they specify in their will. Though in some cases, the way ownership of assets are named will automatically make the surviving couple the owner of the estate, it is still important to plan your estate in case anything happens to the surviving spouse.
Planning for incapacitation
This is another useful aspect of estate planning. This is done in case you become incapacitated. No one prays for a reason to be incapacitated but life is full of surprises so it is very prudent for you to prepare for the worst case scenario. You can prepare for this by appointing a health care proxy who will be in charge of making health decisions on your behalf when you become unfit to make such decisions. You will also appoint a financial power of attorney who will call all the shots regarding your finance in case of incapacitation.
In planning your estate, you will need the guidance of an attorney who will ensure every step is properly carried out without errors. Our attorneys are always available for consult and hire.