Estate Planning for
Young Families with Children
Authored By: Adam Rubin, Esq.
You may
think that Estate Planning is reserved for the 40-plus crowd with multiple
assets and thick stock portfolios.
Think again.
Several
Estate Planning tools are relevant for all young families with children and several
other tools may be important, depending on your financial situation.
Advance Directive: The Advance Directive is a document that allows you to (1) choose a person to make medical decisions for you if you are unable to and (2) capture, in writing, your choice of the treatment you would either want or refuse in various end-of-life situations. An Advance Directive will put your mind at ease and reduce the stress on loved ones who are functioning under very challenging circumstances. It helps to remove the “guess-work” from making decisions during medical crises. The Maryland Office of the Attorney General has provided an Advance Directive Form which is recognized throughout the State. This form may be used as an initial template and then tailored for your unique needs.
Will: A will has several important functions. First, you can choose who will receive money or personal items in the unfortunate event of your passing. Secondly, and often more importantly for young families, a will can include a designation of the guardian who will take care of your children if the worst happens. An alternative Guardian can be designated in the even that your first choice is unable or unwilling to serve as Guardian for your children. Having a Guardian in place can bring a high level of peace of mind to parents who want to ensure that their children will be taken care of in the event the unspeakable happens.
Power of Attorney: The Power of Attorney document enables another person to act for you in financial matters, with the option for other types of powers as well. The Power of Attorney can be solely limited to financial powers, or can include powers such as the ability to sign tax returns, enter into contracts, give gifts, and/or have powers over a revocable (living) trust. In 2010, Maryland adopted a Statutory Power of Attorney Form. This form may be used as an initial template and then tailored to your unique needs.
Advance Directive: The Advance Directive is a document that allows you to (1) choose a person to make medical decisions for you if you are unable to and (2) capture, in writing, your choice of the treatment you would either want or refuse in various end-of-life situations. An Advance Directive will put your mind at ease and reduce the stress on loved ones who are functioning under very challenging circumstances. It helps to remove the “guess-work” from making decisions during medical crises. The Maryland Office of the Attorney General has provided an Advance Directive Form which is recognized throughout the State. This form may be used as an initial template and then tailored for your unique needs.
Will: A will has several important functions. First, you can choose who will receive money or personal items in the unfortunate event of your passing. Secondly, and often more importantly for young families, a will can include a designation of the guardian who will take care of your children if the worst happens. An alternative Guardian can be designated in the even that your first choice is unable or unwilling to serve as Guardian for your children. Having a Guardian in place can bring a high level of peace of mind to parents who want to ensure that their children will be taken care of in the event the unspeakable happens.
Power of Attorney: The Power of Attorney document enables another person to act for you in financial matters, with the option for other types of powers as well. The Power of Attorney can be solely limited to financial powers, or can include powers such as the ability to sign tax returns, enter into contracts, give gifts, and/or have powers over a revocable (living) trust. In 2010, Maryland adopted a Statutory Power of Attorney Form. This form may be used as an initial template and then tailored to your unique needs.
- Advantages of a Power of Attorney:
- Inexpensive way to appoint an agent to have financial powers in the event that you are unable take care of your own finances (e.g. due to disability).
- Can be restricted to one transaction/event or can be granted for a period of time.
- Excellent replacement for a guardianship in many cases, reducing the financial and time related resources that would be needed for a guardianship appointment.
The above documents are essential for
all young families with children, and can prevent unnecessary hardship and pain
that can arise without proper planning. You will have peace of mind as you
carry a “toolbox” of Estate Planning documents for your growing and developing
family. If you and your spouse have begun to accumulate a significant amount of
assets, other Estate Planning tools, such as a revocable (living) trust, may be
pertinent as well.
Contact an Attorney at The Shump Law
Firm, PC, to discuss setting up or updating your Estate Plan. Please call (410)
832.8865 to schedule a consultation today.
Disclaimer
The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, letters and electronic mail. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.
Disclaimer
The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, letters and electronic mail. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.
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