There is a general misconception that exists concerning estate planning in regard to age. Many people are under the impression that you don’t need to prepare a will or engage in other forms of planning until you reach your twilight years and have accumulated considerable assets. In fairness, it is true that people at or past the age of retirement are probably going to see estate planning as a more immediate need than young people who are just starting out in life. But the fact remains that estate planning is important for younger folks as well.
Young married couples who have children definitely have to take estate planning seriously. The first thing to consider is the matter of guardianship. We would all like to think that we will never become one of the statistics, as it were, but fatal accidents do happen. It is important to record your wishes in terms of the guardianship of your children should you and your spouse pass away in an accident of some kind.
Additionally, even though you may not have substantial assets to distribute, it is advisable to think ahead financially. If you were to die at a young age, would your spouse be in a financial position to provide for the family alone? It is a good idea to evaluate the needs of your young family and make sure that there is sufficient insurance in place so that they will not be left in a precarious situation should the unthinkable happen.
None of us has a crystal ball and we are all “day to day,” as they say. Though it is best to think positively and live life to the fullest without any grim expectations, making sure a plan is in place to address any eventuality is a matter of good old fashioned common sense.
- Taxation of Nongrantor Trusts - October 6, 2021
- Dangers of Do-It-Yourself Estate Planning - September 27, 2021
- CRT: Best Tool for Proposed Tax Changes? - June 9, 2021
