When you welcome a new child into the family, it’s a time of wonder and excitement. It’s also a time of new responsibilities. One key responsibility is ensuring that your child is provided for in the event that you pass away unexpectedly or become incapacitated. While every parent wants the best
for his or her children, many young parents neglect these measures.
Some young adults simply believe it’s too soon to think about estate planning in New Jersey since they expect to have many healthy years ahead. Others don’t feel that they have enough assets to bother with estate planning. However, any adult with dependents should take certain steps, and young parents are no exception. In fact, these measures can be all the more critical for those with young children.
When young adults take steps to protect their loved ones, many make the mistake of resorting to forms rather than making a full analysis of the family’s estate planning needs. Some truly believe that a do-it-yourself will is all they need, while others view it as a temporary measure that’s better than nothing in the short term. However, there’s more to manage than many young adults realize.
Some core issues young parents should consider, particularly when there’s a new addition to the family, include:
The best way to protect your family may differ depending on your goals, the age of your children, whether you are a single parent or two-parent family, what type of assets you have, and a variety of other factors. The experienced estate planning attorneys at Willis Law Group LLC can guide you through the analysis, helping to create the comprehensive estate plan that’s right for your family.
An intentionally defective grantor trust allows wealthy families to transfer assets from one generation to the next while achieving significant tax savings. IDGTs are especially useful if you have assets that will appreciate significantly over time.
In most states, spouses can purchase and own property separately from one another. However, in community property states, if one spouse purchases property, it is the property of both spouses. This has implications for both estate and tax planning.
Parents usually want to leave their children equal shares of their estate, but equal isn’t always fair. If you plan to provide more (or less) for one child in your estate plan, preparation is important.
