Estate planning is the process of establishing legally binding instructions that dictate what will happen to your finances, property, and other assets if you pass or become incapacitated. For parents, these plans provide a comforting peace of mind since they can protect and provide for their children. Here’s a helpful guide to provide you with more information if you’re starting to get your affairs in order.

What to Know About Estate Planning as Parents

Can our children inherit our assets?

If minors are listed on a will, they won’t inherit their assets until they reach the legal adult age, which is 18. In these scenarios, you can assign a trustee to watch over the assets in the meantime.

Express your inheritance wishes in a revocable living trust.  While a trustee will still be involved, you can provide instructions on how they manage your children’s funds until it’s theirs.

What’s guardianship?

Minors without a parent may end up in the foster care system until they’re 18. To avoid this outcome, appoint a trusted adult to serve as your little ones’ guardian should you both pass. You may also want to include instructions on how they should raise and care for them.

Should we make an estate plan if we don’t have assets?

Estate plans can provide many other protections beyond asset distribution. For example, parents should choose a trusted friend or family member to serve as a power of attorney—this person will manage your finances and health care decisions if you become incapacitated. You should also include an advance directive, which is a legal letter that explains your health wishes if you can’t express them due to an illness or injury.

When should we update the estate plan?

Review the document annually with an estate planning attorney to ensure the terms accurately reflect your current life situation and future wishes. Update the plan if you experience any considerable life changes, like having another child or getting divorced.

If you’re a parent preparing for your family’s future, turn to Wills and Trusts Hawaii in Honolulu. These estate planning attorneys will help you create a thorough plan that protects your assets, looks after any minor children, and details your future wishes. Get more information about their services online, or call (808) 792-8777 to schedule a free consultation.