During this time of year, many of us look forward to spending time with family. It’s an ideal opportunity to have important, albeit uncomfortable, conversations with our parents about their future—especially when it comes to estate planning. If you have aging parents but are also the parent of minor children, juggling responsibilities for both your children and parents can feel daunting.
Mackenzie Sorich, attorney and founder of View Ridge Family Law & Estate Planning, talks about this essential topic in her webinar “Estate Planning 101: Protecting Your Family". If you have aging parents and minor children, this webinar talks about key legal strategies that can help ensure their future is protected.
Why Crucial Estate Planning Discussions are Essential for Your Family: Young and Old
As your parents age, it’s crucial to have an open conversation about their wishes for the future. Without an estate plan in place, you risk facing difficult and unnecessary challenges, such as delays in accessing their financial accounts, conflicts over medical decisions, and the possibility of a lengthy and costly probate process. A good estate plan ensures that your parents’ wishes are honored, and that their assets and healthcare decisions are managed according to their preferences without leaving you to guess or clean up a legal mess.
It’s equally important to consider what would happen to your children if you were no longer here. Who will care for them? How will their financial, educational, and emotional needs be met? Without a clear plan in place, the courts or CPS will decide who will take guardianship, and your wishes may not be known or respected. By making provisions for their care and future, an estate plan can ensure that your children are supported according to your desires, even if you’re not there to guide them.
Key Estate Planning Tools
We get it, having “The Talk” about estate planning with your parents may seem awkward at first, but we’re here to empower you with knowledge so you can ensure your parents' wishes are followed before it's too late.
Here are a few essential tools to discuss with your parents:
Do they have a Will?
Outlines distribution of assets
Won’t avoid probate, which can be costly and time consuming
Do they have a Trust?
By putting assets in the trust, allows for more seamless distribution
Avoids probate and does not require court intervention
Can specify how and when assets are distributed, which is especially helpful when considering the care of minor children
Can safeguard the financial security and well-being of minor children in particular
Revocable trusts can be more flexible but still offer strong protections for your family
Do they have a Health Care Directive?
Outlines medical preferences (which is especially important if they are unable to make decisions for themselves)
Appoints someone to make decisions if trustee is unable to do so
Do they have a Medical Power of Attorney?
Ensures a person of your choosing can make medical decisions on your behalf if you become unable to do so due to illness, injury, or incapacity
Do they have a Financial Power of Attorney?
Ensures a person of your choosing can act on your behalf if you become unable to do so due to illness, injury, or incapacity to do things like pay bills, access bank accounts, and make financial decisions
Why a Trust Is Important for Powers of Attorney?
A trust can outline the scenarios in which the estate planning tools mentioned above can be utilized according to your wishes
Estate Planning Tools for Parents of Minor Children
For parents with minor children, additional tools are critical:
Minor Guardianship
It’s vital to designate a proposed guardian for your children to avoid the legal system stepping in to make this decision. If something were to happen to you and you don’t have legal documents dictating who should become responsible for your children, a judge and/or CPS will make that decision for you.
In the instance of unexpected parental incapacity or death, CPS and the courts will decide who will take care of your kids, both in the short- and long-term without advanced legal planning.
Unfortunately, we’ve represented clients in situations where a parent unexpectedly passes away, and the child was sent to live with a caregiver who the deceased parent wouldn’t have chosen as a guardian. In this situation, the assigned guardian was inexperienced and inattentive to the needs of the child, and had a history of drug use but claimed to be “clean”. However, this person was “next of kin.” The court system prioritizes this relationship and has little time to evaluate the potential environment a child may be entering. More suitable relatives were left to petition the court to become the child’s guardian.
Working with an attorney can ensure the right people can immediately support your children in the event of incapacity or death while avoiding lengthy (and costly) legal battles.
Trusts for Minor Children
Establishing a trust that provisions for the care of your minor children ensures that their financial needs are met, and that the assets are distributed according to your wishes.
It can also guide how future decisions are made, including education and financial decisions. For example, you can ensure your children have money set aside for college, buying a home, or any other goals you have for them. Only a trust can provide these things to your children in privacy outside of public court filings. A will does not offer your children protection from creditors, predators and future divorces.
For many families, distributing assets based on specific timeframes or milestones can help manage financial security and ensure beneficiaries use the funds wisely. A trust can also determine how assets are distributed over time. For example, if you have minor children, your estate can distribute assets when certain conditions are met, like when they start college or are preparing for marriage.
Though it’s hard to imagine not being there for these milestones in your child’s life, careful planning and a trust can help prepare them for future success.
Protect Your Family’s Legacy
Estate planning isn’t just about protecting assets; it’s about protecting your loved ones. By ensuring that your parents’ estate is properly planned, you can reduce the stress of probate, avoid creditor risks, and ensure that everyone’s wishes are honored. If you have minor children, it’s even more essential to protect their future with a clear, legally binding plan.
Working with an attorney is the best way to protect your family.
Estate Planning Discussions Are Essential
At View Ridge Family Law & Estate Planning, we can help guide you through this process. If you’re ready to take proactive steps for your family’s future, contact us today at 206-703-0764 or reach out online to schedule a consultation. Don’t wait: your family’s peace of mind starts with this conversation.
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