Why Young Families in NYC Need an Estate Plan Now

Estate planning is not just about your estate. This means that you need an estate plan, even if you have no estate to speak of. In the context of probate law, an estate is the property that a person leaves behind after he or she dies. It is what the probate court distributes to your closest surviving family members if you do not have a will, and if you do have a will, then the probate court follows the instructions in the will when determining how to divide your estate. When people are able to leave property behind that the probate court can distribute, it is only because they have made plans. How much money would be left if, after you retired, your expenses stayed the same as they are now, especially if you needed long-term care? Estate planning is also about documenting your wishes regarding your care in your old age, to protect your family from emotionally and financially ruinous situations. If you have children, you need an estate plan, and the best way to get started on one is to contact a Bronx estate planning lawyer.

You Are Never Too Young or Too Broke to Build Your Estate Plan

If you have young children, you probably feel that love is an unlimited resource, but money is so tight that you are afraid to look at your bank account balance. Estate planning is a lifelong process, and you have plenty of demands on your time as a parent of small children. The first estate planning document you need is a will that determines who will be the guardian of your children’s property if you die when your children are minors. Children cannot inherit property in their own right until they reach adulthood, so a court-appointed guardian must be accountable to the court about how he or she uses the money to cover the children’s expenses.

You should also buy a life insurance policy with your children as beneficiaries. Unless you have a serious chronic illness, life insurance policies are inexpensive if you buy them when you are younger than retirement age.

Would Your House Do a Better Job of Becoming Generational Wealth If It Did Not Belong to You?

You do not have to be wealthy to establish a revocable trust, and it is never too early to establish one. Property that you place in a trust does not become part of your estate after you die; therefore, it is not subject to probate. If you place your house in a trust, then it will be safe from creditor claims, so there is no risk of the probate court selling your house and using the money to repay your debts, such as reimbursing Medicaid for your nursing home care. Instead, your children get to inherit the house without even having to wait for your estate to settle.

Schedule a Confidential Consultation With a Bronx Estate Planning Attorney

An estate planning lawyer can help you draft a version of your estate plan that reflects your family situation as a parent of young children.  Contact Cavallo & Cavallo in the Bronx, New York to set up a consultation.

Source:

lawhelpny.org/resource/living-trusts