Monday, May 31, 2010 Why Do Parents Need an Estate Plan?
How many times have you heard someone tell you that you need an estate plan? Many people are quick to tell you how much it is needed, but there are many who aren’t even sure what that means, so I am going to give you an overview of why a parent needs an estate plan.
Think of the last time you headed out for a child-free evening. Remember writing down details of your child’s schedule, routine and other needs? I bet you couldn’t imagine leaving your home without a comprehensive set of babysitting instructions. An estate plan is a long term set of those instructions. It usually includes naming a person to raise your child in case something happens to you. It also can ensure your values are passed down to your child and that the right person makes the financial decisions for him or her.
An estate plan allows you to leave your assets to the people you want, when you want and how you want. If you don’t go through this important exercise, the default rules of the State of California will apply to you, and your family will likely not get the end result you had envisioned. An estate plan usually includes a will and/or trust which passes assets to those you want, and names guardians for your children; a power of attorney allows someone you trust to stand in your shoes financially if you are unable to do so; and health care directives name someone to make health care decisions for you if needed. An estate plan is a living document that should be reviewed and updated as your life circumstances change. Most importantly, it is something every parent should have. |