Estate planning in Washington should be started by all new parents. You can wait until a child is born or plan beforehand. What brings unexpected difficulties is never attempting to plan for your child’s future. An estate plan for your children doesn’t require money as much as it does preparation. Special provisions are needed should you die before raising a child. You can make those decisions now and help your family avoid potential heartache.
Guardians or conservators
Think about the role you play now and what a child would need to replace it. At some point, your children might have special needs that require specific care. Guardians are those you assign to be the new parents for your child. Conservators, who are usually appointed by a judge, handle the financial decisions of an adult instead. Estate planning can help you to anticipate the needs of your family or potential disabilities.
Life insurance requires beneficiaries, and these can be your children. Estate planning using life insurance offers flexibility because of the diverse ways an estate can use annuities. When you assign beneficiaries through life insurance, however, be aware that they’ll have the right to use their payments how they wish. You may want to set up a trust.
Beneficiaries can legally receive the assets you own regardless of what the assets are, but you should be strategic about who your beneficiaries are. If you don’t list children as beneficiaries now, your death won’t innately bequeath your assets or insurances to them. Being specific about your heirs will help you to determine an equitable division of assets among your children.
Estate planning in Washington
A trust is the most versatile option for building a child’s financial estate. Keep in mind that you’re a living lifeline of a newborn. Imagine how their lives would look if you weren’t there. Making the decisions now to assign a guardian, some financial assets and a will gives your family security.