If you have minor children, you need a will. There is no exception. Without crafting a plan for what happens in the event that your children are orphaned, you will be subjecting your entire family to in-fighting and chaos, and your children will be taking the brunt of it all.
That said, having an expertly crafted will is not a daunting task. In fact, it is almost invariably the most affordable estate planning option in terms of initial costs. Most young families are on a tight financial leash, so a will-based plan is not only important for the sake of the children, it’s also practical from a budgeting standpoint.
Joe McCleer has two young children himself, and he strives to provide estate planning for his clients that put their families in as strong of a position as he is putting his. Estate plans for young families should not only clearly name who will be caring for the children, but also provide the necessary resources and protections to ensure that the children are raised right and have a bright future no matter what comes their way.
Frequently Asked Questions About Young Family Planning
It’s never too early to get a will, but three major life events usually trigger the real need for one: getting married, buying a house, and having children. When you have children, a will is an absolute need. A will is the only way to nominate guardians for your children should you pass before they become adults.
If the children’s other parent is still alive, the children will very likely stay in the custody of that parent. But if both parents are gone, a judge will decide who will care for your children, and anyone can ask to be considered. This could lead to a great amount of family in-fighting, and may result in a choice of guardian for your children that you would not have wanted.
State law dictates that minor children can receive an inheritance of any size, but it must remain in the control of a custodian until that child becomes a legal adult at age 18. The custodian then controls the inheritance and has the discretion as to how to use it for the benefit of the child.
This is a very common concern. The thought of an 18-year-old suddenly gaining control of a large sum of money makes many parents wary. But with proper planning, you can ensure that your children will always benefit from their inheritance, but may not gain actual control and spending authority until they reach a more mature age.
Costs for a will vary, but they are generally more affordable than trusts in up-front costs.
Any trust-based estate plan should be accompanied by a will. If you have minor children, you cannot nominate guardians for them in a trust; only a will. Further, a trust only can control the assets that are titled in its name. It is very common for trust-based plans to having accompanying wills to “pour over” any assets into the trust after the trustmaker dies that hadn’t previously been properly assigned to the trust.