Most young parents don’t often think about death or serious illness—but unexpected events can happen. That’s why many invest in medical, life, and disability insurance. However, far fewer take the next step: creating an estate plan.
Estate planning ensures your wishes are followed, especially regarding the care of your minor children and the distribution of your assets.
Why Estate Planning Is Crucial for Young Families
Without a clear plan, decisions about your children and estate may be made by the courts. With a solid estate plan, you gain peace of mind and protection. Here’s what young parents should include:
- Designate legal guardians for your children
- Choose someone to manage your finances if you’re incapacitated
- Specify healthcare decisions and treatment preferences
- Create a will and/or trust to avoid court involvement
Planning for Disability
If you’re unable to make decisions due to illness or injury, you’ll need trusted individuals to act on your behalf. You should set up:
- Healthcare Power of Attorney: Appoints someone to make medical decisions.
- Financial Power of Attorney: Assigns someone to handle your financial affairs.
These legal documents ensure that decisions are made by people you trust, not appointed by the courts.
Choosing a Guardian for Minor Children
If both parents are incapacitated or deceased, a guardian will raise your children. If no guardian is named in a will, a judge will make this decision.
When selecting a guardian, consider:
- Values and parenting style
- Geographic location and schooling options
- Emotional and financial stability
Assigning a Conservator
A conservator manages your children’s finances until they are of age or capable. This person can be the same as the guardian or a separate individual. Naming a conservator in your will gives you control over who manages your children’s inheritance.
Wills vs. Trusts: What’s the Difference?
- Will: Names guardians and distributes assets, but must go through probate court.
- Trust: Avoids probate, offers privacy, and allows you to set conditions on inheritance.
A comprehensive estate plan often includes both a will and a trust to cover all legal and financial bases.
How to Start Your Estate Plan
Here are the key steps:
- Consult with an experienced estate planning attorney.
- Create powers of attorney for health and finances.
- Write a will naming a guardian and conservator.
- Establish a trust if needed for asset distribution.
- Update your estate plan every few years.
Estate planning is not a one-time event. Review your documents regularly to ensure they align with your current wishes and family needs.
Need Help Creating Your Estate Plan?
This article offers general information and is not legal advice. For personalized legal guidance, contact our office.
Contact our Sherwood or Searcy office at 501-834-2070 or
schedule a consultation online. We’re here to help you secure your family’s future.