5 QUESTIONS NEW PARENTS SHOULD ASK THEMSELVES ABOUT THEIR ESTATE PLAN

1. Do I have anything written down anywhere that outlines WHO will take care of my kids in case something happens to me?
I have clients that have nothing written down anywhere, and they are just “hoping” and relying on the good spirits of their relatives or friends that someone will step in. While we rely on informal associations, this is not how authorities work. They need documentation to prove that you are the proper guardian and are often prohibited from doing anything until this paperwork is produced.
I also have clients that have something written down “somewhere” but turns out its not signed or notarized. The legal effect of this paper is the same as not having anything at all.

2. If my kids are going to be taken care of, do I have anything that says how they will be taken care of?
I have clients that tell me that they want to nominate their parents for example, but after seeing this on paper they realize that their parents might not be the best choice in managing complex finances, making decisions for their kids, or simply don’t event speak English very well, creating substantial difficulties when dealing with these matters. There is also a potential for someone to misuse the property meant for your children, or simply abandon their responsibility for it, so the property is just going to waste, can become a nuisance, and can becomes a legal obligation. Finally, believe it or not, there are people that will be willing to just appropriate for themselves what you worked hard your whole life for.
So, what guarantee do you have that someone else will manage your property with the interests of your child in mind?

3. Do I have a back-up? Meaning, what if whoever you “hope” to take over your estate is simply not available or can’t be found?
For example, if you nominate your sister or brother, but they are away somewhere or cannot be reached, who can step in and take over guardianship of them, even if temporarily. You certainly don’t want your child to end up in child custody while everyone frantically searches for someone who can legally step in as a guardian.

4. Is there someone that you don’t want to step in to take care of your kids?
Sometimes excluding someone from this responsibility is just as important to you and your child as nominating someone. More often than not, my clients request that someone is excluded either from responsibilities of taking care of their kids, from taking care of their estate, or to be disinherited all together. There is no judgement there, and you can always change your mind, but for now, your wishes must be clearly outlined.

5. Will my kids be provided for long term? That is, do you have someone that will not only be responsible for them, but will also make sure that your hard-earned money then passes to them?
Interestingly enough, these can be two separate designations. You can nominate someone to take care of your kids, and simultaneously nominate someone who will manage your financial affairs for your kids benefit. These are not contradictory matters and some people are just better suited for one role over the other.

Bonus: Finally, the elephant in the room, what about the statement: “I am young and I am healthy and I don’t expect to get hurt or die.”
All I can say is, I myself am a lifetime optimist and I say good for you and all my positive energy is always with you. However, a lot of times the challenges with guardianship come in during “temporary” incapacity. We certainly don’t hope for people to pass away, but what does happen very often is incapacity because of hospitalization, car accidents, disease, or numerous other causes that you yourself simply don’t have control over and they are not your fault. All I can say is, since you are young and healthй now, take the steps to protect your and your children’s wellbeing while you can!

Now, why are we talking about all this?
I am here to tell you what a proper estate plan does in order to solve this problem. An estate plan is a set of confidential, properly executed, legally binding documents that address these issues. These documents will:

1. Appoint who will be a legal guardian to your child in case you are hospitalized or something more severe happens to you. Appoint an alternative nominee, if that person is not available.

2. Identify and outlines how your estate or your finances are to be used to take care of your kids.

3. Provide limits for how your estate should not be used, for example prohibiting investments or properties going to waste or being sold for personal profit.

4. There are many, many other benefits, but most importantly is that they are a piece of mind that your children will be taken care of.

From a personal side, I love the expression of relief and confidence that I see on my clients’ face after they put their final signature on these documents at my office. Their newborn or toddler is often right there with them and I can’t communicate how happy they are that they took care of this matter now and can move on building their future in confidence.

So, if you don’t have an answer to the 5 questions I outlined, feel free to contact me. I would be happy to walk you through this process step by step.

Contact our attorneys to make an appointment if you have further questions.