Planning for the Future: Why Young Families Should Start Estate Planning Early
A major mistake many young families make is waiting to do their estate planning until they feel they have cemented themselves financially. No matter your age or where you are in life, setting up your estate protects you and your loved ones from even the most unexpected of events.
What Happens If You Do Not Have a Will?
When a person passes away without a will, that is referred to as dying ‘intestate’ and Pennsylvania laws have predetermined how much each family member would be entitled. If you pass away intestate with a spouse and children, the law has a “one size fits all” approach that has determined that your spouse will only get half of your estate’s value plus $30,000, the rest to be divided up among your children. However, often times a person desires for their spouse to inherit the entire estate and only pass to the children if the spouse also passes away, which requires a will to be drafted to reflect that intent.
Intestacy laws do not consider whether your children are five years old or fifty-five when deciding distributions and access to them. If you have a will drafted, your assets can be placed in a trust with a person you can depend on being labelled the trustee to manage the assets until your children reach an age of maturity designated in your will.
Name Your Guardians Now.
For young parents, it is a tough conversation to have when discussing who would raise their minor child or children in the event of a tragedy. There may be a specific family member both of you trust and that individual can be designated as the guardian of your children in your will. It is important to have this conversation early on and to discuss this with the potential guardian. Doing so can help avoid the courts becoming involved to determine custody rights and allow your true intent to be carried out.
Provide Certainty For Your Family.
The simple truth is that having a will and estate planning documents removes much of the uncertainty and confusion for your family. Do not leave it to chance that the laws of intestacy are truly reflective of your wishes for your estate. It is best to be prepared early for whatever may happen and revise your estate planning documents as your life and those around you change as well. Estate planning may seem daunting at first, but with the proper legal help, any young family can be secure for years to come. Interested in learning more, contact the members of our Estate Planning group for help at (717) 864-8969.
