The birth of a new baby is a joy, and something that enriches the lives of many young parents in White Plains. Parents put a lot of thought into preparing for this new stage of life. One aspect of parenthood that some parents might not give much thought to, however, is what will happen to their child if they pass away while the child is still a minor. This is why estate planning for young parents is so important.
First, it is important to ensure you have your own care needs addressed. Documents such as a medical and financial power of attorney and a health care proxy are important should a parent become incapacitated and another individual needs to step in to access the funds necessary to take care of the child and make decisions regarding the incapacitated parent’s care.
Another important aspect of estate planning for young parents is the designation of a guardian and a trustee. The guardian is the person who will have custody of the child should both parents pass away before the child is grown. The trustee is the person who pays the child’s bills, files taxes, invests funds and distributes funds to the child if necessary.
Finally, young parents should make sure they have a will and perhaps a trust in place. These documents allow parents to pass their assets on to their desired heirs. It is important to note that minors are not legally permitted to own property, so plans will have to be made as to when young parents want their child to be able to access their funds.
Thinking about dying and leaving your child alone is not pleasant. However, being prepared is the best thing you can do for your child should the unthinkable happen. Estate planning is just as important for young parents as it is for older adults. Ultimately, a thorough estate plan may be the ultimate gift you could give your child during a difficult time.