An estate plan is a tool that you may create and update at any age. If you have young children or an elderly parent, you may begin thinking about who would care for them in the event of your unexpected death.
With the right legal documents in place, you may designate a relative or an individual to take custody of your kids, as reported by Financial Advisor magazine. You may also nominate someone to take control of your assets and manage them on behalf of your surviving beneficiaries.
How could an estate plan take care of my family?
Several different types of trusts could fulfill the need of caring for your children, spouse or parents. You may decide to customize one that meets your specific wishes. If, for example, you have family members with special needs, a trust may provide for them without affecting other means of financial help, including government assistance.
Children under the age of 18 may not have had sufficient life experience to effectively manage their money. The trustee that you name in your estate planning documents must follow your specified directives when caring for your beneficiaries. You may include instructions for their health care, educational, religious or other needs.
How often may I revise my estate plan?
The individual you choose as your estate’s trustee must follow the guidance you provided in your documents. As you and your family’s lifestyle change and your assets grow, you may wish to update your estate plan to reflect new circumstances. Communicating and documenting changes in real-time provides you with an opportunity to discuss how you wish to distribute your property after your death.
Effective estate planning may require customization and updating during life’s major milestones. You may leave revised instructions that specifically direct the management of your assets to provide financial support for your family members.