An estate plan is more than a document spelling out who gets what when you die. This plan is much more encompassing and is something everyone should have, whether in their nineties or their twenties and thirties, and everything in between.
When it comes to those in their twenties and thirties with young families, an estate plan is particularly important. Here are three reasons why:
Reason #1: Guardianship.
Arguably the most important reason for a young family. A guardianship is a legal document that outlines who raises your children in the event of your passing. Without this document, the court will decide who should raise your family.
Reason #2: Funds to raise your children.
In addition to picking who raises your children, you may also want to make sure there are funds available to help raise them the way you would prefer. Perhaps you want the kids to go to a private school. You can put together a trust that provides payments to help cover the expenses of this school. Or maybe you want them to have a home in a good location? You could have a trust to help provide funds for the guardian to purchase a home that meets these needs.
Reason #3: Incapacitation.
Accidents can happen to anyone, anytime. An estate plan can provide guidance to handle any number of potential situations, including what would happen if both parents are involved in a tragic crash that results in a coma or otherwise incapacitates the parents. It could provide instructions not only on how to care for the children and finances while you heal, but also outline the types of medical intervention you want when you are ill.
These are just a few considerations to discuss when putting together an estate plan. It is generally best to have this plan tailored to your specific needs by a professional.