A common misconception is that estate planning is only for the distribution of your assets when you die. But this is simply one component of estate planning, and arguably one of the least important for many young families. Here are 4 reasons why you need an estate plan if you’re a young family – even if you don’t have a lot of assets! Watch to find out how estate planning applies to your family and why you shouldn’t put it off!
See the transcript below the video if you prefer to read!
This is a heavy topic, and I know it isn’t fun to talk about. I’ve talked with a lot of families in their 30s and 40s who didn’t think estate planning was important for them because they didn’t feel like they had enough money to make it worth it. But estate planning isn’t always about your assets and the money you have. Planning for these worst case scenarios that we hope will never occur is one of the most selfless things we can do for our loved ones. Here are four reasons you should not put this off if you’re a young family.
Do It For Your Children
Number one, it’s extremely important if you have young or disabled children. Who will take care of your children if you aren’t able to? You’ll be much better making these decisions than the state will. So don’t let the state make these decisions for you!
Healthcare Decisions
Number two, health care decisions in case you’re incapacitated. Making health care decisions in advance takes the pressure off of your loved ones. It can be helpful for them to know what you would have wanted. Also, having it down on paper can reduce tension between your spouse and other family members, like your parents or siblings, who may have differing opinions of how things should be handled. When decisions are already made, it can reduce guilt for your loved ones too. And I won’t get into the details, but this is even more important if you’re in a long term relationship but you aren’t married.
Managing Finances While Incapacitated
Number three, it can make managing your finances easier, if you’re incapacitated, for the person who would be taking over. So whether that’s your spouse, another family member or friend. In most cases, they’ll have easier access to the accounts that they aren’t listed on if you have an estate plan in place. This is helpful so they can continue paying bills. They can make sure that things run smoothly while you’re not able to manage your finances.
Protect Your Pets
Number four, don’t forget about your pets. This may not be a priority to you, but if it is, remember that your pet could end up in an animal shelter if plans aren’t made beforehand. It doesn’t always make sense to include them in your official estate planning documents, but there are ways that you can include them and make plans for them.
One way to do that is to talk to the person who you think could take care of your pet if you’re not able to. Make sure that they’re comfortable with it and that they’re willing to do that. You can write that person’s name down and include it in your estate planning documents. Also, be sure to include instructions like what medications your pet takes and what food and treats they like. This can make the transition smoother for your pet as well as the person taking care of them.
When you look for an attorney, make sure that they specialize in estate planning so that they’re more familiar with the nuances in your state’s laws and they can provide guidance from relevant experience. This is something a financial planner can help with because they can connect you with other professionals who would be a good fit for your situation.
