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If you have a young family, estate planning may be one of the farthest things in your mind. It may boil down to priorities, interests, or it could simply be that estate planning for parents is a topic too uncomfortable to think about at the moment.
But taking care of your children’s needs goes beyond the present. Especially if you have young children, you would want them to be well cared for, should anything happen to you or your spouse. In the event of the unexpected, estate planning allows you to set a plan in place so you have someone you trust to look after your young family.
Here are things to keep in mind in estate planning for parents:
1. Choose a guardian for your minor children
Nominating a guardian is one of the most important considerations in estate planning for parents. In the event that there is no surviving parent, the guardian takes on the role of raising the children. Since they will be making decisions you will not be able to do (education, medical treatments, living conditions, etc.), it is essential that you choose someone you trust.
2. Develop a trust
Keep in mind that minors will not be able to directly inherit property. If there is no one named in your will, the court may appoint a professional trustee and the costs of their services may be deducted from the inheritance.
When it comes to your assets, you would want someone who is particularly good at handling money. This is where estate planning and wealth preservation strategies and solutions work together for the future of your child.
A trustee does not have to be the same person as your guardian, but they will be managing the inheritance until your child reaches the legal age.
3. Purchase life insurance
Life insurance is a way for you to protect your family’s income in the case of your passing. This will allow surviving members of your family to cover expenses for as long as possible and should be a crucial part of estate planning for parents. Consider whether your life insurance can cover debts, funeral expenses, living expenses, and even future needs like college.
4. Provide instructions for the distribution of assets
If both parents die, estate planning ensures that their assets are used to care for their children. This also avoids family feuds in the distribution of assets.
Letters of instructions or letters of wishes can be used to tell your representatives everything they need to know to manage your estate. These instructions can provide them with relevant information as they carry out the stipulations of your will.
5. Review and update your estate plan over time
As the family grows, your needs and situation evolve as well. Take time to see whether your estate plan is still suitable for your family. Review if you still have the right person appointed as your children’s guardian, and determine if new trusts should be set up.
Also, among the most important estate planning tips is to check whether you have an updated list of your assets, including those that are digital. In most cases, it is best to enlist the help of an estate planning lawyer to assist you.
As a parent, you would do anything to protect your children. Having understood what is estate planning and why it is important, you are securing the best options for their needs in case you are no longer able to provide these for them. If you are also supporting your parents, make sure that you also review our tips on estate planning for the Sandwich Generation.
Here at Kith & Kin Law Corporation, we pride ourselves with combining our up-to-date knowledge on Estate Planning Singapore with our corporate conviction to provide the best legal advice based on our client’s personal circumstances.
If you would like to know more about estate planning for your young family, get in touch with us today.
