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Nowhere is the need for an estate plan more pronounced than when a parent has minor children or when a new child is expected. Every parent wants what is best for their children, but too many parents overlook the importance of estate planning. Whether you are expecting your first child or already have children, it is critical to ensure that your estate is in order to protect your family.
Important Estate Planning Questions For Parents of Young Children to Ask. Ultimately, parents of expecting or existing children need to consider a few basic questions when thinking about their Florida estate-planning needs:
1) If you become incapacitated (even temporarily), who will be entrusted to make health care decisions (i.e. speak to pediatricians/pediatric specialists, gather health records, pick up prescriptions, sign consent forms, etc…) for your young children?
2) If parent(s) pass away, who do they want to become the legal guardian of their minor child?
3) If minor children’s parents pass away, who is going to receive assets and ensure that funds are used for the care and education of the minor child (do you want to ensure that money you leave is spent in a particular way, e.g. private school, religious summer camp, etc….).
4) Will the legal guardians receive funds directly or do you want the funds held in trust for your minor children until they reach a certain age? (hint, the answer is you want the funds held in trust – and probably well after your child turns 18).
5) Do you need life insurance? If you are expecting children or have young children, purchasing or increasing a life insurance policy is a worthwhile consideration. While our firm does not sell life insurance, we are happy to recommend trusted professionals who do. This can be surprisingly affordable. The average term-life insurance rate on a $500,000.00 policy for a 35 – 39 year old is $26.20 a month according to PolicyGenius.com.
If you are utilizing a revocable trust as part of your estate plan, then you also need to make sure IRAs, 401(k)s, life insurance all list the revocable living trust as the pay-on-death beneficiary.