Estate Planning When You Have Small Children

When you become a parent, you realize that there is very little that you would not do to protect your children. While it is never easy to think of your own mortality, having children has a way of pushing this thought to the forefront. What will happen to them when you’re gone? Will they know your wishes? Will siblings squabble if you don’t have a plan in place?  

While it is impossible to know what the future holds, with planning, you can at least take comfort in knowing that all will be well if you or your partner passes away or becomes incapacitated.  

Young parents may not need anything overly fancy for planning your estate, but there are a few important things to take into consideration. You’ll want to review and update it regularly to ensure all is in place for your family. Here are some simple steps to take when planning your estate from Elaine McGinnis P.A. Remember to speak with a qualified attorney to create a plan that best suits your family’s needs.  

Write a Will  

For most young parents, the most important part of writing a will is about naming guardians for their children. The guardian that you name in your will is the person who would take over if you and your spouse or partner were unavailable to raise your children. 

If your child ever needed a guardian, 

the local court will appoint the person you nominated in your will.  

If you don't specify who you want in your will, the court will make the decision for you. Family members are frequently chosen as guardians, but what if you want a certain member of your family to raise your children? Or a close friend? The court would not be able to determine this in the absence of a will.

Learn More > What Should Be Included in Your Will  

Buy Life Insurance  

Although this is more of a financial planning activity than a legal one, it is useful to have when considering the care of your children in the future.

A great approach to make sure the surviving spouse would have access to money if you or your partner passed away suddenly is to buy a life insurance policy that would replace your income for a few years.

Draft a Living Will & Durable Power of Attorney  

Every adult should establish a durable power of attorney for financial or health care, also known as a "living will." These agreements will make life considerably simpler for your family in the event that you are involved in an accident or fall ill without warning. 

In a living will or advance directive, you outline your wishes for end-of-life care. This can be done no matter your age.  

Keep in mind, a living will is NOT  

the same as a last will and testament.  

Your living will can be as detailed or general as you wish. For example, you may want to simply say that you want the necessary medication to relieve pain (called palliative care) but don’t want to be resuscitated in certain circumstances.  

A durable power of attorney (DPOA) for health care gives a reliable individual the power to carry out your intentions as stated in your advance directive and to make medical choices on your behalf if you are unable to do so.

A DPOA for finances gives someone authority over your assets, which can be a big benefit to your family members or surviving spouses who might need access to your checking account to pay the mortgage or monthly bills.  

“But I’m young and healthy! Do I need these documents?” Yes. Even though they are unlikely to be ever used, they are important to have on file. 

Name Your Children as Secondary Beneficiaries 

In the unlikely event that you and your partner both pass away at the same time, you may want to name your children as secondary beneficiaries. This designation will place them next in line behind your primary beneficiary, ensuring that retirement savings, life insurance, and other assets will be passed to your children if both you and your initial beneficiary pass away.  

It is important to note that your children will not be able to cash in on your life insurance policy until they turn 18, so the life insurance proceeds may pass to a court-appointed guardian unless you establish a custodial account in which these funds can be held until your children are of age.  

Create a Trust  

The basic function of an estate plan is to determine who would receive what and when. If you have young children, setting up a trust can help specify how and when you want to pass your money and belongings to them.  

When setting up a trust, you can decide 

 who will manage your assets and decide when your children  

will receive them & for what purposes.  

If you think that your child’s guardian is automatically able to use inheritance money to care for your children, you’d likely be wrong. By default, the court, not the guardian, controls the inheritance until your child reaches the age of 18 or 21.  

Start Planning Your Estate  

If you have children or are planning to have children, estate planning is an important step to take to ensure your kids are taken care of if you or your partner pass away or are incapacitated.  

Our Tampa, FL-based estate lawyer (and mother of two) fully understands and can help you develop your will, durable power of attorney, living will, trust, and more.  

Make a plan for your family. Contact Attorney Elaine McGinnis to begin estate planning today; (813) 851-3380.