Your Estate Plan Should Account For Your Family's Needs
If you have a family with young kids, your estate plan should account for their needs. An estate plan can include many tools and documents, and everyone has a unique plan because of their unique needs. When you have a family, you might need to customize your plan to account for their needs if you suddenly die. Here are some things you might want to consider if you are in this situation.
Name a Guardian for Your Kids
When you have young kids, your estate plan must account for them, and one way you can do this is by naming a guardian. Suppose you and their other parent die. Who would care for your kids? Where would you want them to live? If you do not name a guardian in your plan, the state might decide where to place your kids. They might even end up in a foster home. If you want to protect your children, you should choose and name a guardian on your estate plan. If you and their other parent both die, this plan would protect them by sending them to the person you name as their guardian.
Purchase Life Insurance
The second way you can protect your children is by purchasing life insurance. A life insurance plan guarantees a specific cash payout. If you do not leave life insurance or money for your kids, their guardian takes on the entire financial burden of raising them. If you leave life insurance, their guardian can use this money to pay for their expenses. You can even designate how the guardian must use the money and when they can use it.
Leave a Will That Tells When Your Kids Inherit Your Assets
The other important step you should take is to leave a will that tells when your kids inherit your assets. If your kids are young, you probably will not want them to have access to your money, house, cars, or other assets yet. Therefore, you can stipulate in your will when they will receive these things and where they must be stored until your children reach the age when they can have them.
An estate plan protects you and your family. If you need help creating a good and effective estate plan, you can visit a law firm in your area. An estate planning attorney can help you know what options you have with your plan.