Estate Planning is Essential When Starting a Family
June 1, 2022 | Sage Capone
The excitement of a new family comes with so much responsibility. The last thing on your mind is Estate Planning. However, it is an essential time to consider nominating a guardian or conservator since minor children are not legally capable of making decisions for themselves or inherited properties that become passed down to them.
Often parents hold off on making these vital or key decisions until their children become older. These can be flawed decisions should a child become orphaned, and no guardian or conservator has been named allowing extended family members the opportunity to engage in a lengthy legal battle for control of the child’s inheritance. Simple measures of creating a Will or Estate Plan with a signed nomination of child’s guardian or conservator will avoid these financial loopholes. If a child is older than 14 years old, they can nominate their own guardian or conservator. Of course, making these decisions can be difficult and hurt other family members. Just remember choices can be changed at any time should you reconsider your decision.
Lastly, a Trust can be named as a beneficiary for a life insurance policy which is useful for income replacement upon passing of the decease’s beneficiaries (spouse or children). There are several insurance options to consider whether it is a death payout, childcare costs, whole or universal insurance which can build cash value or interest over time. Insurance is a vital solution for any income bracket to create peace of mind and security for every family situation.