Children can be impacted the most when unfortunate events occur to their parents or guardians. Estate planning is an opportunity to use the law to protect your children from unnecessary stress and takes steps to provide for them when you are unable to – even temporarily. So what is an estate and do I have one?
Your “estate” is property you own such as your home, and other assets, like cars, bank accounts, retirement accounts, investments, businesses, family heirlooms or personal keepsakes, jewelry, and even collections (i.e., baseball cards or art). Estate planning is making a plan for how your estate will be distributed (what assets and how much will go to whom) after you die, as well as taking steps now to make the process of carrying out your plans as simple as possible.
However, in a larger sense, estate planning also includes planning about other matters, such as who will care for your health and finances if you become incapacitated, selecting a guardian for minor children, and ways to minimize estate taxes and expenses. Estate planning is particularly important for individuals with minor children since, without an estate plan in place naming a guardian, the court will have to intervene in the event of the death of both parents. An estate plan can also be customized to include provisions that reflect your values about how you would like your children raised in an ideal world if you are not available to do so due to incapacitation or death. Financial incentives, prerequisites to receiving funds, other unique limits and boundaries specific to your family’s values can also be incorporated into an estate plan.
If you would like to have a short conversation about how estate planning may help protect your family, please email intake@gcpc.com, call 703-556-0411 to speak to an experienced estate planning attorney. Your children are worth it!
Naming a Guardian
For young parents, the most important part of an estate plan is naming a guardian for minor children. In the event that both parents are deceased, the guardian named in the Will is responsible for any minor children. Although this scenario may seem unlikely, it’s still better to be prepared than to leave the court to decide who should serve as guardian in the event something unexpected happens to both parents. While the court typically appoints a family member, not all parents think that is the best choice for their children, so it’s best to set your intention in writing, in a valid Will or Trust. Additionally, different guardians can be selected for different children. Parents may have trouble agreeing about who should serve as guardian of their children, so a crucial step is making this determination together as parents to ensure you’re on the same page.
Contact us today at 703-556-0411, email intake@gcpc.com, to have a conversation about how to decide whom to name as a guardian for your children. We are experienced in helping parents, including separated or divorced parents, make these challenging decision in the best interests of their children. Simply, contact us to schedule an appointment here, to have a conversation about how we can help!
Estate Planning for Young Adults
Once your child turns 18, they are considered an adult, able to make their own financial, legal, and medical decisions. This benchmark is an important time to update your estate plan (or create one if you haven’t yet), as well as to consider your child’s estate plan. While children may not yet be concerned with assets, it’s important for them to have two specific documents: a Power of Attorney for financial matters and an Advanced Healthcare Directive for medical matters. A power of attorney (“POA”) is a legal document that authorizes one person to act on behalf of the person establishing the POA. In other words, the document creates a legal fiction allowing another person to stand in your shoes to take actions when you cannot, or simply out of convenience if you prefer someone else to do so.
An Advanced Healthcare Directive (also known as a living will or health care proxy) is a legal tool which allows an individual to communicate their wishes regarding future medical care in writing. When properly written, this directive can authorize another person (the agent or proxy) to make medical decisions for you if you become incapacitated, or unable to make those decisions for yourself, and explain what kinds of care you do or do not want ahead of time, ensuring your wishes are met. It’s important to ensure that the Healthcare Directive includes a HIPPA authorization so parents are able to access a child’s medical records, if necessary.
These two documents are especially important if your child is moving away for college (or studying abroad). What if your child loses their credit card while in another state or country and has no money in their bank account? What happens if your child is in an accident and admitted to a hospital out of state? Without a POA or Healthcare Directive, it may be difficult to provide any help to your child in these situations. With a POA, you may have access to their bank account to provide additional funds. With a Healthcare Directive with HIPPA authorization, it may be easier for you to get information from a doctor over the phone or make time-sensitive medical decisions.
Even though your 18-year-old child may not have many assets, it is still important for them to consider creating a Will. A Will ensures that they’re able to make their own decisions about the assets they do have, rather than letting the government decide and distribute the property under state intestacy rules (dying “intestate” means dying without a Will). This may be even more important if the child’s parents are divorced or are otherwise unlikely to agree on matters in the event of a child’s death. At 18, both you and your child are going through a lot and estate planning may not seem like a priority on the to-do list. However, accidents can happen, and it’s best to be prepared for different circumstances and to take precautions to plan ahead of time so you’re able to swiftly respond to any issues that may arise.
Estate Planning Before Travel
Parents traveling without their children should make sure they have an estate plan in place in the event something happens to one or both of them while traveling. Most importantly, if parents have a minor child, they should have a Will or Trust naming a guardian for any minor children. Parents should also make sure their estate plans are up to date (including beneficiary designations on financial accounts) and that any Trusts are properly funded with relevant assets. Comprehensive estate planning should also include a POA and Advanced Healthcare Directive. It’s also important for estate planning documents to be organized and accessible. Someone (such as your named Executor or Personal Representative) should know where your documents are in case they need to be obtained.
Parents should also consider what documents are needed if a minor child is traveling alone or with another family on vacation. First, it’s important for your child to have some type of identification. If they don’t have a driver’s license, they should bring a school ID or other form of photo identification. It is also beneficial to have a copy of the child’s birth certificate (either with the child or a parent of the family your child is traveling with). Typically, children traveling in the U.S. do not need written consent to travel. However, in the event that non-married parents share custody of a minor child, there may be travel restrictions included in their custody agreement. In such situations, it can be beneficial to have written consent from both parents about the child’s ability to travel. If a child is traveling internationally, it’s even more important for the child to have written consent to travel from both parents.
It is also important to consider how your child will get access to medical care while traveling. If traveling with a group or another family, an adult in the group should have a medical consent form giving the adult the ability to authorize medical treatment for your child in the event of an accident. A temporary POA may also be necessary if your child’s vacation includes activities that require guardian consent. Parents should also check with specific airlines and TSA requirements regarding minor travel if the child will be traveling by plane either alone or with another family or group.
Considerations if Your Child Joins the Military
If your child joins the military and doesn’t already have an estate plan in place, it’s important for them to create one, particularly before a deployment. At a minimum, your child should have a Will to address the distribution of any assets and a POA authorizing someone (likely a parent) to address any matters at home that arise while they are away training or deployed. Your child should also have an Advanced Healthcare Directive with a HIPPA authorization allowing someone to get access to their medical information while they are away and make any medical decisions in the event they are injured and unable to make those decisions for themselves. Individuals in the military also have additional estate planning considerations, such as military life insurance and survivor benefits and it’s important your child makes sure beneficiary designations are made and up to date before deploying.
An Ethical Estate Plan – Bequeathing Your Values and Intangible Assets
Leaving a legacy is about more than passing down money and assets – it’s also about the intangible things you leave for your loved ones, such as your wisdom, values, and life lessons. An “Ethical Will” is a different type of document that allows an individual to pass down things they believe are important for family to remember after they pass – their “emotional wealth.” An Ethical Will can include information about family history they want remembered, things they hope their family members learn from their experiences; treasured memories; and what they believe are most important and valued about life. The document can also include considerations about what the writer hopes the family does with their inheritance and how they’d like to be remembered.
There is no set format for an Ethical Will. It can be a more formalized document or read as a letter to family. What is included in the document should change with the individual based on what they value and believe is important information to share with loved ones and future generations. It can include a set of instructions or hopes for a family business, as well as photos or videos. Creating an Ethical Will should allow an individual to reflect on their life and what’s important to them and create the document in whatever way feels the most special to them.
Clients say addressing their intangible assets gave them as much, or even more clarity and relief beyond organizing their financial assets and signing their estate planning documents.
Contact Us
An experienced estate planning attorney can help you prepare and guide you through the process of protecting your wealth and possessions and also provide strategies to leverage your chosen legacy and your values during your lifetime. Estate planning attorneys at General Counsel, P.C. can guarantee that you’ll feel more confident about your future after you’ve made your estate plan or updated your existing plan. We would welcome the opportunity to help you navigate the estate planning process. Contact us today at 703-556-0411, email intake@gcpc.com, or if you’re ready to commit to protecting yourself and your loved ones, simply contact us to schedule an appointment, to have a conversation about how we can help!
