Young people do not always think about estate plans, as they feel they have plenty of time to make these plans. While you might have many years before you die, tomorrow is never a guarantee. If you have young children under your roof, you should consider creating an estate plan to protect them. While you might not die for many years, having an estate plan for protection is vital just in case. Here are several tips to consider when creating a plan to protect your kids.
Make a Will
The first part of every estate plan is a will. A will is a legal document that holds up in court after a person dies. Your will can state many vital things, including the names of your beneficiaries and the assets you want to give them. You can also include many other things in this document, and it is the starting place for settling your matters after you die.
Include a Named Guardian
One essential thing to include in your will is a guardian. Naming a guardian in this legal document tells the court where your kids will live if you die. The person you name should be someone you trust, and you should talk to this person before creating your will to make sure they are willing to take on this role. If you pass away while your kids are young, they will live with this person.
Consider a Trust
Another vital step to take in your estate planning is creating a trust. A trust is also a common estate planning tool, and it allows you to place assets into it. The purpose is to simplify the process of transferring assets from you to your beneficiaries when you die.
Purchase Life Insurance
The other thing you should consider is purchasing life insurance. If you die, you can leave cash to your kids through this policy. The money can go into a trust fund of some kind for your children. You can designate where the money goes and how they spend it. Leaving life insurance helps you protect your kids in many ways, and it can also be helpful for the guardians of your kids.
When you have small kids at home, you should take the necessary steps to protect their future. Creating an estate plan is one of these steps. If you would like assistance with your plan, contact a lawyer that offers estate planning services.