Are you in the process of starting a family? Did you and your family recently move? When you begin to encounter significant events like these, it is important to have a solid foundation and be prepared for what life may throw at you. Estate plans may not always be something that you think about, but here are a few reasons why they should be an important step you should look forward to taking.
Estate plans need to be updated as significant life events occur. One really important time to update an estate plan is when children enter the picture. It is imperative to determine who will be the financial and physical guardians of those children should something happen.
There are several ways to provide for children in an estate plan. A testamentary trust can be created by will for the care of the children. What is a testamentary trust you ask? This type of trust will provides specific information and appoints a trustee to manage the assets of the deceased. Alternatively, a basic will can create a pour over provision to pour over assets into a trust for the benefit of the children. In this case, a trustee will be named who can aces money to take care of the children.
Another good time to evaluate a will is as children get older and acquire more of their own assets. It is likely that at one point children become self sufficient. At that point, it is possible that parents want to update their estate plan to care for grandchildren or family friends.