Things to Consider When Writing a Will and Estate Plan With Young Children 

As a parent, your life likely revolves around caring for your young children. Between feeding your kids, bath time, and play, you tend to have little time for yourself. Let alone think about will and estate plan for your children. However, planning for the future is not something that can be ignored till your kids get older. 

If you have young children, you should consider updating your will and estate plan. A will and estate plan is a set of legal documents that lay out your wishes on how you want your assets and property to be distributed after your death. It dictates who will manage your finances in case of your incapacity and more. It can include instructions on how you want your children to be raised. You can add the children’s guardian, in the unfortunate event of your untimely death. 

Without a will and estate plan, your wishes might be up for debate in court, leading to lengthy court proceedings. A well thoughtful estate plan will help to lessen the havoc of losing a parent. It will help secure your children’s future success and well-being. Consider the following when writing wills to ensure they are comprehensive and your wishes are crystal clear.

Writing a Will and Estate Plan With Young Children 

Who will be their guardian in the will and estate plan?

First and foremost consider a guardian. The other surviving parent would always be the first choice if they are capable in the eyes of the law. However, if both parents don’t have the capacity to raise their kids a guardian will be assigned. 

In your will and estate plan, you can appoint anyone you trust such as a parent, sibling, or friend to be your children’s guardian. However, ensure you discuss the matter before appointing your selected candidate in the document. They have no legal obligation to take on the responsibility of a guardian if they don’t feel they have what it takes. Also consider adding a contingent guardian, if for some reason the first can not perform their guardianship duties. 

Who will handle your children’s finances?

Appoint a trusted executor who will administer and interpret your will and estate plan with your children’s inheritance and best interests at heart. An executor will often work with a probate lawyer and is responsible for distributing assets, maintaining property, paying taxes and more in an effort to carry out your wishes according to the will. 

The appointed executor should be someone who has the knowledge, time and ability to handle your estate’s finances. This can be someone different to the guardian you have appointed. Often a person can be an excellent guardian but not the most financially savvy – and that’s ok. Like guardianship, an executor has no obligation to distribute the estate. So, discuss the matter with your candidate before putting it in writing and assign an alternative executor. 

Have you established a trust?

When you have young children, assets left to them are typically held in a trust until they are 18 or reach the age of majority in their state. This will help to legally protect and hold the assets until they are mature enough to handle them on their own.

However, guardians can not extract these funds for anything beyond necessities like day to day expenses, schooling and medical bills. Therefore they may have a limited budget for your children’s daily needs beyond the minimum. Things like extra-curricular school trips, sporting clubs and more, may not be deemed a daily need. It is critical to set up rules of additional maintenance and support within the guardianship clause for your children to enjoy the same lifestyle they are used to. 

At what age will your children receive inheritance?

There are many possibilities to postpone or stagger inheritance or financial assets to your children. Some parents feel that a large sum of inheritance is too much for some young adults to manage responsibly. So they postpone inheritance payments to a more mature age or in accordance with major milestones like university or college education or the down-payment of a house. 

Have you addressed possible incapacity?

As unpleasant as it may be to think about, parents also need to consider what will happen if they become physically or mental incapacity. A will doesn’t extend to living persons, so an enduring power of attorney and personal directive should be drafted up. 

An enduring power of attorney will help to manage your property and finances, and a personal directive will be responsible to make personal and health care decisions on your behalf. They will make the decision of who will be appointed as a guardian to your children if you can’t make the decision yourself. 

Have you named your children as beneficiaries?

Often couples will choose their spouse as the main beneficiary in their wills and life insurance policies. However, they should name their children as a second-choice beneficiary whenever possible. This will ensure the equal distribution of the estate among the kids if both parents pass away. 

As parents you would do anything to protect your children. You want to ensure their well-being even if you can’t be here to watch them grow up. The decisions you lay out in your will and estate plan will give you peace of mind that the finances are secure for your children. 

Just remember that it can’t wait. And if your family grows bigger or there is any major change in your life you should update your will and estate plan to accurately reflect your assets and wishes. 

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