You and your spouse prided yourselves in planning most details when it came to having children. Your meticulous planning included proper diet, health and exercising during the pregnancy, preparing and painting your children’s rooms, child-proofing the home and making sure you were comfortable with the school district.
But, sometimes, young parents overlook an obvious and important task. That is estate planning and having a will on hand. A survey from 2017 disclosed that about 60% of the more than 1,000 respondents did not have an estate plan. Millennials and GenXers fared even more poorly. Roughly 78% of millennials and 64% of GenXers did not have a will. If you are young parent within these age groups, you really need to take those extra steps and create a will.
Naming guardians and trustees
If you do not have a will, you are unnecessarily complicating things for your estate and your children. Without a will, the state decides how to deal with your estate and assets, making crucial decisions that would be better off in your hands.
Here are some critical reasons why young parents should have a will:
- Who will care for your children? Naming guardian or guardians for your young children remains one of the most important things you can do when creating a will. You want to make sure you share similar values with a guardian, who also has the financial wherewithal to take on the responsibility. Also, make sure your chosen candidates are comfortable with this important role.
- Who will manage the assets? You will need to select a responsible, trustworthy and financial savvy person to oversee the assets by naming them as the trustee. This person will manage the assets for your children until they reach a specific age. A trustee will make sure your children do not make any financial blunders with the money or are unduly influenced by others.
Surprisingly, many people – including young parents – procrastinate when it comes to estate planning. In case of an unforeseen tragedy and the deaths of you and your spouse, a will with specific details will help ensure that you continue to financially provide for your children.