Why You Need An Estate Plan If You Have Kids

Estate planning often seems to be the realm of couples who are retiring or have many assets. However, the fact is that parents need to plan for the unthinkable to make sure their young children will be properly cared for in the unlikely event that they and their spouse are unable to fulfill that obligation.

I am attorney Darcel Lobo. At DAL Law Firm in Normandy Park near the Seattle-Tacoma International Airport, I often work with young families who realize how important this is. Along with the standard estate planning decisions and documents, there are several unique issues that need to be addressed in regard to the care of minor children. As a mother, I understand, and I will go over these during the initial consultation to make sure your children are fully protected.

Important Considerations For Young Families

There are several issues specific to estate planning for families with a minor child. Major points a lawyer can help with include the following:

• Writing a will: A will typically is a document that states how your assets are to be distributed after your death. However, it can also be used to determine who will be the guardian of the children if they are still minors. The court will appoint a guardian if one has not been picked, but that family member may not be the best candidate for your children. It is also worth noting that it is illegal for minor children to be named beneficiaries in a will under Washington state law.
• Creating a trust: A trust will allow you to retain some control over certain assets in the event you pass away unexpectedly. You can even delay distribution of your assets to your children until they reach a certain age or accomplish specific goals.
• Picking beneficiaries for your retirement accounts: This is a relatively simple and straightforward thing to do if your children are older. However, you will need to pick someone who is looking after the children until they are at an age where they can control their own finances.
• Purchasing life insurance: This can be crucial in ensuring that your children will be properly cared for without putting undue financial burden on the guardian.
• Discussing medical treatment: This document will save your children from having to make difficult decisions about the medical care you should receive if you become incapacitated, providing much-needed guidance at a very difficult time for your loved ones.

Frequently Asked Questions About Estate Planning For Minor Children

When you’ve decided to build an estate plan to care for your children in case the worst happens, you are making a wise move. But that also comes with a lot of questions, and I will be happy to clear these up for you. Some of the questions my clients start with include the following:

What is the difference between a guardian and a trustee for minor children?

The difference between a guardian and a trustee is the difference between care for a property and care for a person. A guardianship is required for someone to care for your children. It can go to a family member or a trusted friend, but it is necessary. A trustee will look after any property assigned to a trust for the children.

What happens to my underage children if I pass away without an estate plan?

In most cases, a child whose parent has died without specific instructions will be placed with the closest relative, whom the court will appoint as the guardian. The problem is that if there are multiple close relatives, this can cause more strife and uncertainty than if the choice had already been made.

How does a revocable living trust protect my child’s inheritance compared to a basic will?

If you place your assets in a revocable living trust, when you pass, that trust will immediately become an irrevocable trust. By nature of being in a trust, the assets are no longer seen as part of the estate, and are therefore protected from estate taxes and probate. The assets in the trust can then go directly to the benefit of your kids.

Who Takes Care Of Kids If The Unthinkable Happens? Contact DAL Law Firm.

Parents with young children are generally trying to juggle work, kids’ school, after-school activities and a seemingly endless to-do list. Therefore, it may seem like there is never time to create an estate plan. Perhaps you even think it can wait until retirement. However, it is a mistake to put off making the important decisions that go into an estate plan. Call me at 206-408-1688 or contact me online today to get started.