The Benefits of Estate Plans for Young Families
When you are just starting out as a family, there always seems to be so many things to worry about. Where to live, finding the best schools, quality childcare, and saving for the future. With all of these immediate needs to juggle, an Estate Plan may be the furthest thing from your mind. However, with just a few key pieces of information, and a couple short meetings, we can have an Estate Plan drafted for you that lays the foundation for your and you children for decades to come. Some key reasons a young family in Oklahoma may want to set up an Estate Plan are:
1. Protecting and providing for children: One of the primary reasons for creating an estate plan is to ensure the well-being and financial security of your children in the event that something happens to both parents. By establishing a trust, you can designate specific assets and funds to be held for the benefit of your children until they reach a certain age or milestone. This ensures that their needs are taken care of and that the assets are managed appropriately.
2. Ensuring guardianship of children: In the unfortunate event that both parents pass away or become incapacitated, a guardianship provision in your estate plan allows you to specify who will be responsible for the care and upbringing of your children. By designating a guardian in your estate plan, you have control over the selection process and can choose someone you trust and who shares your values and parenting style.
3. Avoiding probate: Oklahoma, like many other states, requires the probate process to distribute assets and settle estates. Probate can be time-consuming, expensive, and public, which may not be desirable for a young family. By utilizing a trust as part of your estate plan, you can transfer assets to the trust, which will then be managed by a trustee according to your instructions. Trusts generally bypass probate, allowing for a smoother and more private transfer of assets to your beneficiaries, including your children.
4. Planning for incapacity: Estate planning is not only about planning for death but also for potential incapacity. In the event that one or both parents become incapacitated and are unable to make decisions regarding their finances or healthcare, having appropriate documents like powers of attorney and healthcare directives in place can ensure that a trusted person can step in and make decisions on their behalf. This helps avoid costly and time-consuming court-appointed guardianships.
5. Minimizing estate taxes: While estate taxes may not be a concern for many young families due to the high exemption limits, it's still important to consider the potential future value of your assets and their appreciation over time. By incorporating estate planning strategies, such as trusts, you may be able to minimize the impact of estate taxes and preserve more of your wealth for your children's benefit.
If you have any questions or would like to start the process of securing your future, we can guide you through the process and help you create a comprehensive plan tailored to your family's unique needs and circumstances. Give us a call at 405-492-7336, email meg@megwimberlylaw.com, or fill out a contact form on our website and we will be in touch!
