Some people do not feel that creating an estate plan is necessary when they are in their 20s or 30s, so they wait until later in life to make one. If you are in your 20s or 30s, you might have young kids. If so, having an estate plan is essential for their protection. Here is an explanation of how an estate plan protects your kids, along with the top tools you can use for their protection.
Kids Become Wards of the State Without an Estate Plan
When parents die and leave behind their young children, an estate plan protects the kids. Without a plan, the kids become wards of the state. The state decides where they will live and who will care for them. You might have family members willing to take them, but these family members might have to fight the system to gain rights to the kids.
You can prevent these issues through an estate plan. Your plan allows you to state where your kids will go if you both die. Knowing that you have a legal plan for your children might help you feel better about this event, even though it might not happen while your kids are little.
The State Controls Your Money
The state not only takes your kids if you die, but they also take control of your money and possessions. Your state decides what happens to your things if you die without a will and plan. Therefore, you must create a plan for these things.
Tools to Use in Your Estate Plan to Protect Your Children
You can use various tools to create an estate plan that protects your children. The first tool is a will. On your will, you can write down the names of the people who will care for your children if you die. If you include this in your will, the court must abide by your request.
Next, you might want to list your kids as the beneficiaries of your estate. When your kids reach a certain age, they get to have your things. Finally, you might want to buy life insurance to provide your children with the financial means they need to pay for college and other important things.
Are you interested in learning more about estate plans and how they can protect your young children? You can learn more by scheduling a consultation with an estate planning attorney in your area.