5 Questions Parents Need to Answer for Estate Planning - Family Money Adventure (2024)

29 Shares

5 Questions Parents Need to Answer for Estate Planning

Amy Beardsley

May 9, 2018

You’re young, got a great job and a couple of really awesome kids – life is pretty good, right? And when life is good, thinking about what happens when you pass away probably isn’t at the top of your priority list. But sometimes, life throws us a curveball. And while taking control of your family’s finances is an important step, all families, including yours, should have a basic estate plan in place.

While having a will is arguably one of the most important things you can do for yourself and your family, according to a recent survey, more than half of us don’t have a will. Even more alarming is the same study shows only 36% of parents with children under the age of 18 have an end-of-life plan in place.

Creating an estate plan isn’t expensive and doesn’t have to be complicated. While the laws vary from state to state, here are five questions to ask yourself when creating an estate plan for your family.

You might have a life insurance policy through your employer, but what happens if you leave your job? Medical problems are never planned and you might suddenly find yourself with uncontrolled diabetes or a rare blood disease that prevents you from qualifying for life insurance later. Even though you might be healthy now, if you ever switch jobs and have to reapply for life insurance, it might be too late.

Having life insurance is a crucial part of estate planning. Contact a trusted provider and make sure you have enough to cover any debts and funeral costs, and consider future large costs like college, too.

As a parent, if you haven’t put in writing who will take care of your kids if both you and the other parent pass away, you need to do it now. As a parent, naming a guardian for your child (or children) is the number one reason why you need an estate plan. If you don’t have a will that names a guardian for your children, the court will appoint one.

And if you leave it to the court, they generally appoint a family member or other capable friend, but who? Do yourself a favor and make the decision yourself instead of letting the courts decide for you. And once you decide, make sure you ask the potential guardian if they’re willing to take on the role!

Everyone needs a will, whether you have children or not. If you don’t have a will, your family might not get the assets you want to leave them after you pass away. As a legally-binding document, a will provides an outline of exactly how you’d like your property distributed. Without one, the court will decide for you according to the state laws and you might not like it.

Contrary to common belief, whether you have a will or not, all estates must go through the probate process. Having a will speeds this up because it tells the court how you’d like your estate divided. It also helps to minimize any family fights about your assets because it clearly spells out the “who, what and when” of your estate.

When it comes to certain types of assets, like life insurance, IRAs, and 401(k)s, you can name a specific beneficiary and that will take precedence over what’s listed in a will. When you name a beneficiary for these types of assets, it bypasses the probate process altogether.

It’s important to know that children can’t directly own any property until they reach the age of majority. In this instance, you’ll want to name a trust that will hold the assets for them until they’re older. If they might inherit a large amount of money, consider using the trust to set up periodic payments over the course of their life rather than one lump sum when they turn 18.

Even though a will is a legally-binding document, it can be changed at any time while you’re still alive. Life can change at lightning speed — you might have more children, get divorced, get married, or the person you named as guardian might pass away. And because time gets away from us, you’ll want to check in on your will (and double check your beneficiaries) once a year to make sure the choices you made then are the same ones you’d make now.

If you don’t have a will or an estate plan in place already, don’t wait to get it done. Tomorrow is not promised and when someone you love dies, it’s an overwhelming experience. To make it easier on families during this already emotional time, you’ll want to consider these five questions and determine if it would be wise to meet with an estate planning attorney to help you. Knowing and understanding your state’s laws is key, but sometimes it’s best to leave estate planning to an expert who can turn your wishes into a legal document.

About the Author: Amy Beardsley is a Freelance Writer and Professional Ghostwriter, and her work has appeared in dozens of financial planning and real estate blogs and magazines. In addition to writing articles, Amy has ghostwritten content for hundreds of social media profiles. Want to know more? Check out her website, EarlyMorningMoney.com.

Have any estate planning questions for Amy? Let us know in the comments below!

Like this Article? Share it with your friends!

5 Questions Parents Need to Answer for Estate Planning - Family Money Adventure (1)

Kevin Payne

Kevin Payne is the budgeting and family travel enthusiast behind FamilyMoneyAdventure.com. He’s also the host of the Family Money Adventure Show podcast, where he helps families learn to manage their money better so they can afford to do the things they love.

Kevin is a freelance writer specializing in personal finance and travel. He is a regular contributor to USA Today, Forbes Advisor, Bankrate, Fox Business, Credible, and CreditCards.com.

5 Questions Parents Need to Answer for Estate Planning - Family Money Adventure (2)

Check Out These Other Posts

Mint Alternatives: Budgeting Apps To Consider in 2024

Things To Do in Chicago with Teens

Visiting Holiday World in 2024: A Complete Guide

How To Build Credit

How To Create A Family Budget

29 Shares

5 Questions Parents Need to Answer for Estate Planning - Family Money Adventure (2024)

FAQs

5 Questions Parents Need to Answer for Estate Planning - Family Money Adventure? ›

Protect and Maximize Your Estate for Your Heirs

In conclusion, when creating your estate plan, it's crucial to prioritize these three key objectives: naming a trusted individual to handle your affairs, ensuring your estate goes to who you want it to, and protecting and maximizing your estate for your heirs.

What to ask parents about estate planning? ›

12 Critical Questions to Ask Your Aging Parents
  • Is your will up to date?
  • Is there anything I can do to help put your other important documents in order? ...
  • Have you told someone you trust where to find these documents?
  • Have you had a chance to take an inventory of your assets?

How would you like to plan your family for the future? ›

10 Ways to Prepare a Great Future for Your Family
  1. Live for today. ...
  2. Practice balance. ...
  3. Spend less than you earn—every month. ...
  4. Invest yourself in your children. ...
  5. Make the tough choices today. ...
  6. If you're married, love your wife eloquently. ...
  7. Build memories that will make you smile. ...
  8. Never give up.

What are the 3 main priorities you want to ensure with your estate plan? ›

Protect and Maximize Your Estate for Your Heirs

In conclusion, when creating your estate plan, it's crucial to prioritize these three key objectives: naming a trusted individual to handle your affairs, ensuring your estate goes to who you want it to, and protecting and maximizing your estate for your heirs.

What is the most important decision in estate planning? ›

A will or trust should be one of the main components of every estate plan, even if you don't have substantial assets. Wills ensure property is distributed according to an individual's wishes (if drafted according to state laws). Some trusts help limit estate taxes or legal challenges.

What do you say about family planning? ›

Family planning creates benefits in areas such as, gender quality and women's health, access to sexual education and higher education, and improvements in maternal and child health. Note that the Millennium Development Goals have been superseded by the Sustainable Development Goals.

How do you set family expectations? ›

Based on this vision, you can then establish expectations for behavior. Set broad expectations that apply to everyone in the house. Ask yourself questions like, “What must family members say or do to follow the expectations and rules?” and “What might family members do to break them?”

How to start planning for a family? ›

Here are 10 steps to consider:
  1. Review your health coverage. Having a baby can be expensive. ...
  2. Plan for family leave. ...
  3. Arrange for childcare. ...
  4. Make a new-baby budget. ...
  5. Top off your emergency savings. ...
  6. Plan to get a Social Security Number for your child. ...
  7. Update your life insurance. ...
  8. Revisit your disability insurance.

What are the important factors to consider in estate planning? ›

Important Elements of Estate Planning
  • Appointing a Trusted Personal Representative. Selecting a personal representative, also known as an executor, is a crucial step in estate planning. ...
  • Protecting Your Assets with Trusts. ...
  • Planning for Incapacity. ...
  • Regularly Reviewing and Updating Your Plan.
Feb 5, 2024

What should I ask my financial advisor about an inheritance? ›

Four Questions to Ask About Your Inheritance
  • Are there taxes? Knowing if the money is from a life insurance policy, sale of a property, liquidated investments or cash will help to determine if you need to pay taxes and to what degree. ...
  • Are there outstanding expenses? ...
  • Is there fine print? ...
  • Do you need help?

Top Articles
‘Quantum internet’ demonstration in cities is most advanced yet
Long-time couples share their stay-in-love secrets
English Bulldog Puppies For Sale Under 1000 In Florida
Katie Pavlich Bikini Photos
Gamevault Agent
Pieology Nutrition Calculator Mobile
Hocus Pocus Showtimes Near Harkins Theatres Yuma Palms 14
Hendersonville (Tennessee) – Travel guide at Wikivoyage
Compare the Samsung Galaxy S24 - 256GB - Cobalt Violet vs Apple iPhone 16 Pro - 128GB - Desert Titanium | AT&T
Vardis Olive Garden (Georgioupolis, Kreta) ✈️ inkl. Flug buchen
Craigslist Dog Kennels For Sale
Things To Do In Atlanta Tomorrow Night
Non Sequitur
Crossword Nexus Solver
How To Cut Eelgrass Grounded
Pac Man Deviantart
Alexander Funeral Home Gallatin Obituaries
Energy Healing Conference Utah
Geometry Review Quiz 5 Answer Key
Hobby Stores Near Me Now
Icivics The Electoral Process Answer Key
Allybearloves
Bible Gateway passage: Revelation 3 - New Living Translation
Yisd Home Access Center
Pearson Correlation Coefficient
Home
Shadbase Get Out Of Jail
Gina Wilson Angle Addition Postulate
Celina Powell Lil Meech Video: A Controversial Encounter Shakes Social Media - Video Reddit Trend
Walmart Pharmacy Near Me Open
Marquette Gas Prices
A Christmas Horse - Alison Senxation
Ou Football Brainiacs
Access a Shared Resource | Computing for Arts + Sciences
Vera Bradley Factory Outlet Sunbury Products
Pixel Combat Unblocked
Movies - EPIC Theatres
Cvs Sport Physicals
Mercedes W204 Belt Diagram
Mia Malkova Bio, Net Worth, Age & More - Magzica
'Conan Exiles' 3.0 Guide: How To Unlock Spells And Sorcery
Teenbeautyfitness
Where Can I Cash A Huntington National Bank Check
Topos De Bolos Engraçados
Sand Castle Parents Guide
Gregory (Five Nights at Freddy's)
Grand Valley State University Library Hours
Hello – Cornerstone Chapel
Stoughton Commuter Rail Schedule
Nfsd Web Portal
Selly Medaline
Latest Posts
Article information

Author: Prof. An Powlowski

Last Updated:

Views: 5560

Rating: 4.3 / 5 (64 voted)

Reviews: 87% of readers found this page helpful

Author information

Name: Prof. An Powlowski

Birthday: 1992-09-29

Address: Apt. 994 8891 Orval Hill, Brittnyburgh, AZ 41023-0398

Phone: +26417467956738

Job: District Marketing Strategist

Hobby: Embroidery, Bodybuilding, Motor sports, Amateur radio, Wood carving, Whittling, Air sports

Introduction: My name is Prof. An Powlowski, I am a charming, helpful, attractive, good, graceful, thoughtful, vast person who loves writing and wants to share my knowledge and understanding with you.