How to Approach Estate Planning for Families

Many young families delay estate planning, under the false sense of security that age will protect them from unexpected events. Despite the reduced odds of something happening to you or your spouse, the reality is that accidents do happen. Estate planning ensures your loved ones are cared for no matter what circumstances come your way. From protecting the needs of your minor children, to ensuring your spouse is provided for without added financial stress, preparing for anything is the most important bundle of decisions you will make for your dependents.

Five Ways Estate Planning Will Protect Your Family

1. Someone will be appointed to handle your financial affairs

An executor (for a will) or trustee (for a trust) is named when you put your trust or will in place. This person will handle your financial affairs if you are unable to do so. This trusted individual will pay bills, locate assets, work with attorneys and advisors, distribute assets, and carry out your final wishes. This is beneficial for your family, who may have conflicting interests when valuable assets enter the equation.

2. Your life insurance needs will be reviewed

   
   

Putting together your estate plan provides a prime opportunity to set up or review your life insurance policy. This policy should be able to mitigate the financial worry in the event that you pass away. Life insurance can help cover spousal dependence, supply your children’s living expenses and future investments, and create a nest egg for your family.

3. Medical decisions will be made without question

   
   

Within the estate plan, you can also determine your medical power of attorney, someone to whom you give authority to make medical decisions on your behalf. It is important for both parents of children to determine their medical power of attorney, also known as a durable power of attorney for health care, as children may be too young or under too much stress to make these types of decisions. You may also consider a living will to document your preferred end-of-life care, which can take the decision process out of the hands of family and doctors.

4. Your children will have a home and proper care

   
   

With young children, the most important aspect of estate planning is determining who will be their caretaker if something were to happen to you and your spouse. This is a difficult decision but vitally important because without appointed childcare, your children may end up in the care of a guardian, against your wishes.

5. The inheritance you leave will be properly doled out

To prevent the court from appointing someone to distribute financial assets, outlining specific instructions or transferring assets to a trust will ensure that your wishes are properly administered. More importantly, it also provides a schedule for asset distribution for other heirs and restrictions on how the assets can be utilized until minor children come of age.

Why Estate Planning Matters Now

An estate plan can provide freedom to make difficult financial and medical decisions, freedom for your children to be under the care of proper guardianship, and freedom for you to rest easy knowing the people who depend on you most will be cared for thanks to your dedicated planning. If you are ready to start estate planning for your family, contact us to get started.

About Anselmo & Wojcicki, LLP

Anselmo & Wojcicki, LLP is a multi-disciplinary law practice based in Schaumburg, Illinois, specializing in real estate, estate planning, tax planning, business formation, and the sale and purchase of businesses. Our commitment to our clients and our values set us apart from the crowd. Our team of legal specialists has a wealth of experience and expertise to help you meet your legal needs. We are dedicated to providing quality service and building lasting relationships with our clients.