February 01, 2017
My First Estate Plan–It’s Never Too Soon
When people hear “Estate Plan” they tend to think of an older couple, at or near retirement age, that want to protect their assets in order to enjoy their hard-earned wages and much-needed time off. While this is a pretty typical client, The Elder Care Firm also assists younger couples and families that aren’t quite that far along yet. It’s never too early to have some sort of planning in place – especially if you are married or have children.
Because No One Knows What to Expect…
You and your spouse could be in your 30’s and perfectly healthy. One day, you decide to go on a road trip, get into a car accident, and one of you is hospitalized. If you don’t have the right documents in place, you might not get to decide what kind of care your spouse gets – even if you have already discussed what each of you might want in a similar situation. Did you know that in the state of Michigan, unless there is a valid Patient Advocate Designation, the next of kin isn’t automatically accepted as a decision-maker? Can you imagine how hard that would be to watch your loved one stay alive on a machine just because you didn’t put your preferred instructions in a legal document that could have prevented it?
You Might Not Have Many Assets, But What About Your Kids?
Early in married life, many people decide to have children. While some say that no one with kids has any extra money lying around, so why get an estate plan, wouldn’t you want to have a plan in place for your children in case something happened to you and/or your spouse? A simple way to make sure the kids are covered is to appoint a guardian in your will. That’s right; you can pick the person or people who will be in charge of raising your children should the need arise when they are still young. Some people think that designating a guardian will avoid probate, but this isn’t true. There will still be an estate administration process, but the court will know what to do because you left them some direction in your will. Without a will designating a guardian, the court gets to decide where your children go and who will raise them.
Trusts Can Play an Important Role for the Kids, Too
If you are somewhere in between newlyweds and retirement, with still-dependent children, and you have had time to acquire some assets, you might consider adding a trust to your estate plan. A trust is not just for super rich individuals – it can have a major effect on your family’s future should something happen to you. A trust can protect assets, such as your house, investments, etc, and give direction on how to use the “protected money” for raising your children, paying for their college education, or even helping them to buy a house and get settled later in life.
It’s Never Too Early to Start Planning
At The Elder Care Firm, we are committed to helping people protect their assets and prepare for later in life. Depending on your personal situation, we can find an estate plan just for you to meet your needs and help protect your loved ones. Call today to find out more about how we can help you and your family prepare for the future or attend one of our free, LifeCare Planning workshops.