People often think of estate planning as something that is carried out by grandparents and the elderly in general. In fact, one of the main reasons that most people do not have an estate plan is simply that they’re procrastinating until they’re older.
Don’t fall into this trap. Estate planning is something that anyone can do, at any age. If you’re a young parent, for instance, it may be time for a plan, even though you don’t expect to use it for decades.
How an estate plan can help your new family
One reason that parents need an estate plan is so that they can choose a guardian. If anything happens to you, you need to know that you have hand-selected the right person to care for your child. Odds are this will not happen, but you definitely want to have a plan in place just in case.
You may also want to consider the use of trusts and other funds to set money aside for later. You’re not going to leave your assets to a two-year-old, but you do want them to have access to those assets at some point. A trust can hold the assets until they’re old enough.
Furthermore, life insurance is a major part of estate planning. It’s a simple way to leave even more to your new child, ensuring that you can provide and care for them, even if you’re not actually there to do so.
Setting up your estate plan
It’s never too early to start planning. Make sure you know how to get your estate plan set up and all of the options you have.