It’s often assumed that elderly individuals need estate plans, or at least those who have recently retired and are getting their finances in order. It’s fairly natural for people to think that they don’t need to worry about estate planning until they reach that stage in their life.
But it’s actually rather problematic to put off estate planning — since life is unpredictable. You never know exactly when the plan is going to be needed. For example, here are a few reasons why it can be very beneficial for new parents to make a plan, even though they may believe they are too young:
You don’t want minors to inherit
First and foremost, if your children are still minors, you may not want them to inherit property in your will. As a result, many parents will use an estate plan to set up a trust. If they pass away while their child is still a minor, assets are put in the trust. These assets are then used to support the child or held for them at a later date.
You can choose a guardian
Parents can also choose guardians for their children, and these are individuals who will take on a more parental role when necessary. It’s important to get this set up in advance so that the transition goes as smoothly as possible for your child. You also want to talk to the guardian and take your time to determine exactly who you should choose.
You can update your estate plan
Finally, you may be worried that your estate plan will be outdated if you make it so early. But you can always update the estate plan as you go, so this isn’t something you need to be concerned about.
It is important, however, to ensure that you take all of the proper legal steps to set up your plan correctly. Experienced legal guidance can help.