Estate planning when you plan to start a family can be very useful. This is a way of securing the future of your family. How do you start estate planning when you plan to start a family? Is an estate plan necessary when you plan to start a family? What are the things to be considered when preparing an estate plan? Reach out to our estate planning attorneys for a free consultation and leave the rest to us.
About How to Begin Your Estate Plan When You Plan to Start a Family
Estate planning when you start a family is very useful because life is full of uncertainty and you can’t tell what will happen to your family in the future. There are so many reasons as to why you should start estate planning if you want to start a family. Various circumstances may require you to fill some documents in your estate plan with the help of our best estate planning attorney near you. These documents may be; A living will, a will, and a trust. Each document is filed under specific circumstances. Everyone needs to leave their family safe when they die. Some circumstances may force you to nominate a guardian. You should pay attention to specific life milestones of your life to identify the right time to take care of each of your estate planning needs. Some documents always need to be updated at certain points in your life.
Why Begin Your Estate Planning When You Plan To Start A Family
The most perfect time to start an estate plan is the moment you are a legal adult and ready to start a family. The estate plan should be updated every three to five years after the start. The reason for starting an estate plan at this time is the fact that just before you start your own family you are newly responsible for your finances, healthcare, and power of attorney; and you want to consistently make sure everything is accounted for. However, at this point estate planning might be the last thing you will think about which is understandable. There are a few life events that warrant prioritizing your estate plan. The following life occurrences can also be considered as signs to start an estate plan:
- SAVINGS ACCOUNT- The moment you start savings account the next thing you need to think of is where those funds will end up in the event of your death. This ensures the funds can go to the people you care about.
- HOUSE OR PROPERTY OWNERSHIP- This is another to start estate planning as you will probably want to avoid lengthy probate court procedures.
- TRAVEL- An estate plan needs to be updated in the event of a big trip
- INHERITANCE OF ANY ASSETS- The moment you inherit any asset it is the perfect time to start an estate plan
When To Nominate A Guardian
In preparation to have the first child, it is advisable to be thinking of the person to appoint as guardian to the unborn child. Most new parents don’t have this thought in mind, although, it is important to get it in writing. Typically, a guardian is to be named when writing a will, though there are options available for those who may not be ready for the process. At Morgan legal group we provide you with the state-specific nomination of guardian documents to ensure your child is well taken care of by a trusted loved one.
When To Make Will
The perfect time to start thinking of making a will is when you are just about to start a family or you get to any of the above state planning triggers. Unfortunately, many American parents end up passing away without leaving behind a valid will. In such a scenario your family members will end up in a midst of loss and have to make some decisions that might not have been considered by you. To avoid such a scenario, you have to create a will, you do this by appointing a healthcare proxy, designate the power of attorney, and specify how your assets will be distributed. In case you already have a will, then it’s time you make a trust
When to create a trust?
By the time you have more assets, investments, or other property, it may be the right time to start a trust. Trusts give you more control over where your assets are to be distributed while living or after you pass away. It helps avoid probate, furthermore, it can help avoid additional taxes or fees as your assets pass to various beneficiaries.
When should I update my estate plan?
Estate planning triggers are essentially milestones that trigger an increase in wealth thus having an impact on how you wish your assets should be distributed after death. Each time you encounter milestones ensure the additions are accounted for by updating your estate plan. Life changes quickly therefore, you should probably update your estate plan every three to five years.
FREQUENTLY ASKED QUESTIONS
When should I start my estate planning?
As long as you are a legal adult and you are ready to start a family.
How long should I take before updating my estate plan?
There is no specific time. However, you are advised to update your estate plan after three to five years. You can also update your estate plan when you feel there has been a significant increase in your assets.
Why should I start an estate plan?
Estate planning helps protect yourself, your loved ones, and your future from bad decisions, negative influences, and creditor issues.
What is to be considered when preparing an estate plan?
You have to consider the worth of your assets, savings, and the number of your loved ones.
What are other events in life that should trigger the making of an estate plan apart from family?
When you start a savings account, acquire ownership of a house or any property, and inheritance of any assets.
Why should I start an estate plan when I start a family?
This is because at this time you are newly responsible for your finances, healthcare, and power of attorney.
Who is a guardian?
This is a person who will oversee the welfare, safety, and attend to the financial needs of your loved ones.
When should I nominate a guardian to my loved ones?
The most preferred time to appoint a guardian is the moment you are preparing to have the first child.
When is the perfect time to create a will?
The time you start making an estate plan is the perfect time to make a will.
When should I create trust?
This is to be done when you have more assets, investments, or other property.