As a parent, you probably have backup plans for everything: childcare, carpool, even what’s for dinner when the fridge is empty. But what about a backup plan for your family’s future?
Too many parents delay estate planning because they don't want to contemplate their own death, or it is simply not urgent enough in their already busy lives. Yet we all know that life is unpredictable, and without a plan in place, decisions about your children and finances could be left to the courts.
 |
During National Estate Planning Awareness Week (October 20–26), take the opportunity to put the most important plan in place—the one that protects your kids if you can’t.
If you’re wondering where to begin, here are five steps to guide you:
1. Name a Guardian for Your Children
Assigning guardianship is the single most important step you can take as a parent. If something were to happen to you (and your partner, if you have one), who would raise your children? Without legal documentation, the court will make that decision for you, potentially resulting in someone you may not have wanted.
Think carefully about who could provide the love, stability, and values you want for your child. Talk openly with your chosen guardian before naming them and make your wishes official in your will. It’s a difficult decision, but one that ensures your child’s future is secure.
2. Create a Will and Consider a Trust
In addition to naming a guardian, your will is a place to clearly spell out how you want your assets to be distributed. This is your opportunity to make sure your kids have financial resources for education, healthcare, and everyday needs without unnecessary delays or complications.
For added protection, you may want to establish a trust that will establish how and when your child receives funds (e.g., milestone ages or after finishing school). Appoint a trustee, whether it be a family member, trusted friend, or financial professional, to manage the money responsibly and direct the funds to be used as you intended.
3. Secure Life Insurance
If your family relies on your income for household expenses and other obligations, life insurance can provide a financial safety net, so your children are cared for if you’re no longer around. A financial professional with experience in life insurance planning can help you determine the proper amount of coverage for your situation. You can also consider directing the payout to your trust, ensuring the funds are managed according to your wishes.
4. Prepare for Disability or Medical Emergencies
Estate planning isn’t only about what happens after you’re gone. What if an illness or accident leaves you unable to make decisions? That is why it is so important to have the following safeguards in place:
- Healthcare Proxy: Names someone to make medical choices on your behalf.
- Power of Attorney: Allows a trusted person to pay bills, manage accounts, and handle day-to-day expenses if you’re incapacitated.
5. Review Beneficiaries Regularly
Even with a will or trust in place, accounts like retirement plans, life insurance, and transfer-on-death accounts bypass your will and are distributed directly to the listed beneficiaries. Since life moves quickly, it’s critical to double- and triple-check those designations every few years, or after major life events (e.g., birth of a new child, buying a home, etc.), to be sure they reflect your current situation and financial goals.
 |
Don’t Put It Off
Too many families, even high-profile celebrities, have learned the hard way what happens when estate planning is delayed. The result is often confusion, legal battles, and financial strain on loved ones. Remember that estate planning is really family planning. It’s about protecting the people who matter most.
Just like a financial plan, estate planning evolves as your life changes. You can always update your documents, so choose what works for your life today, and then modify as needed.
If you don’t have a plan in place, or haven’t reviewed it in a while, please take the time to do so now. Your future self (and your kids) will thank you.
If you need a recommendation for a trusted estate planning professional, please reach out and we would be happy to connect you.
Gary Blum is a Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is a wholly owned subsidiary of Guardian. Strategies for Wealth is not an affiliate or subsidiary of PAS or Guardian. Not practicing CPA for Guardian or its subsidiaries or affiliates. CA Insurance License # 0M10186.
Guardian, its subsidiaries, agents and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation.
