One day, I saw a news story flash across my phone that completely captured my attention. The news released the information that Aretha Franklin's legally binding will was found...in her couch! Her family has been fighting over the estate since the late singers death in 2018. This got me to thinking...as we get older, we may not want to have them, but there are uncomfortable conversations we MUST have to ensure the security of our family.
We'll buy alarm systems, car seats, and baby monitors to keep our children protected, but what about estate planning, like having wills, and other necessities in order?
Becoming a parent is a joyous and transformative experience that comes with a host of responsibilities. Alongside providing love and care for your children, it is crucial to think about their future and safeguard their well-being. In addition to your baby registry needs, parents must be aware of the legal considerations that can protect their family's interests. Our jobs as parents, sadly, is to work ourselves out of a job. The day will come when our children will stand on their own as adults and someday, we will no longer be here.
DISCLAIMER: Just so you know, this information is strictly that, information. I am not a lawyer and this is not to be taken as legal advice. This information is meant to begin a conversation and spark more action as you look into the needs of your family.
There are two fundamental legal documents that every parent should consider: a will and a power of attorney.
1. The Importance of a Will:
A will is a legal document that outlines how your assets and estate will be distributed after your passing. As a parent, drafting a will is of utmost importance to ensure that your children are provided for and their needs are met even when you are no longer around.
2. Understanding Power of Attorney:
Power of attorney (POA) is another critical legal consideration for parents. A power of attorney grants a trusted individual the authority to make legal decisions on your behalf if you become incapacitated or are unable to make decisions yourself. Parents should consider creating both a financial power of attorney and a healthcare power of attorney,
the two primary types of power of attorney.
As we bring new life into the world, we know that life can change in an instant. Being prepared isn't just for your birth plan.
“Estate planning is an important and everlasting gift you can give your family. And setting up a smooth inheritance isn't as hard as you might think.” — Suze Orman.
Every family's situation is unique, and it is essential to regularly review and update your legal documents to reflect any changes in your circumstances or wishes. By taking proactive steps today, you can have peace of mind knowing that you have made the necessary provisions to protect your children and their future well-being. Parents should be aware of several important legal considerations to protect their interests and ensure the well-being of their children. Here are some key areas to consider:
1. Trusts: A trust can be established to hold and manage assets for the benefit of your children. Trusts provide flexibility in distributing assets over time and can specify conditions for disbursements. They can be particularly useful when children are minors or if you have concerns about their ability to handle large inheritances.
2. Life Insurance: Parents should consider obtaining life insurance policies to provide financial support for their children in the event of their untimely death. Life insurance can help cover living expenses, education costs, and other financial obligations.
3. Child Custody and Visitation: In case of divorce or separation, parents should establish clear child custody and visitation arrangements. Consulting with a family law attorney can help ensure that these arrangements are legally enforceable and protect the best interests of the children.
4. Estate Planning: Beyond wills and trusts, estate planning involves various legal strategies to manage and distribute your assets. It is essential to consult with an estate planning attorney to create a comprehensive plan that addresses your unique needs and goals.
5. Education Planning: Saving for your children's education is an important consideration. Explore options such as 529 plans or education savings accounts to ensure you have funds available for their educational expenses.
“Don't wait. The time will never be just right.” — Napoleon Hill.
Remember, laws and regulations vary by jurisdiction, so it's important to consult with a qualified attorney who specializes in estate planning and family law to ensure that you have a comprehensive plan that meets all legal requirements and protects your children's best interests.
As a parent, it is crucial to consider the legal aspects that can protect your children and ensure their well-being in the future. By creating a will, you can establish guardianship, provide financial security, and dictate how your assets will be distributed. Additionally, granting power of attorney to trusted individuals empowers them to make critical decisions on your behalf when you are unable to do so. Consulting with a qualified attorney experienced in family law can provide you with expert guidance to navigate these legal considerations and help secure your family's future.
If you're looking for to prepare for your family's future, download your copy of Protected: The Essential Starter Guide to Estate Planning for New Parents