The joy of parenthood is incomparable. Your focus is now on ensuring that they grow up having a stable life. One critical responsibility that frequently escapes your mind is developing a comprehensive estate plan. While starting one may seem like a chore, this plan is the ultimate act of love for your child.
Here are 3 reasons why you need an estate plan.
Navigating the risks of intestacy
When you pass away without a will, your estate must follow New York’s intestacy laws. This means you do not have control over the distribution of your assets.
Furthermore, if your child is a minor upon your passing, the court may appoint a fiduciary who will manage their inheritance until they turn 18. While your child eventually receives their share of the estate, they may not be ready to manage a windfall responsibly.
Ensuring the appointment of a legal guardian
Without a will, you leave the most important decision of your life to a judge. Under New York law, if both parents pass away without naming a legal guardian, the court decides who raises your child. Naming a guardian as early as possible ensures your child is raised by someone who shares your values.
Securing your child’s financial future
Establishing an estate plan can help you prepare for your child’s future. This gives you the chance to think about their college fund and living expenses. You may choose to set up and fund a living trust while creating instructions or conditions that grant your child access to the fund.
The steps you can take to protect your family
Contrary to popular belief, estate planning is not just for the wealthy. This is a necessity for any parent wishing to avoid legal complications that often follow after their passing.
Although starting your plan with a ready-made template is possible, it is wise to seek legal guidance. An estate planning attorney can provide insights that will help you set a legally sound plan.
