If something happened to me tomorrow, what would happen to my kids?
Most young parents put off estate planning. As a parent of two myself, I get it – life is busy, and death feels far away. And let’s be honest, we just don’t like to think about it.
But creating an estate plan can be straightforward and affordable, and it’s one of the most important things you can do for your family. Unexpected events happen – car crashes, sudden medical events, or accidents at work. The point is not to focus on fear, but instead to focus on what you can do today to ensure that even if the worst happens, your family is protected.
With just a few documents, you can stay in control.
A Will, to nominate guardians and set up your children’s finances
A will is the cornerstone of most estate plans. For families with young children, it lets you accomplish two important goals:
First, a will lets you decide where your assets will go when you die. If you have young children who rely on you for support, you understand how important it is to make sure they are financially secure.
Without a will, New Jersey state law will decide where your assets go. In many cases, that’s in line with your plans. In other cases, the state’s “default estate plan” doesn’t line up with your wishes. By creating a will, you override the state’s plan and dictate exactly where you want your assets to go.
Leaving money to support your young children after your death is common sense. However, it should be done in a deliberate way. Children under 18 cannot own significant property in their own name. A properly drafted will allows you to leave money to support your children well into the future, with safety features to ensure the money is spent responsibly. While they are young, someone you appoint as trustee manages the money for them, spending it for their health, education, and support. At a certain point, once your children are responsible adults, you probably want them to receive the money outright. I can help you craft an estate plan that follows your wishes and preferences to set your children up for success.
Second, and most importantly, a will lets you nominate a guardian for your children.
If both parents pass away without nominating guardians, a guardian will still be appointed – it just may not be who you would prefer. By nominating guardians in your will, you can have your input on who you would want to raise your children in your absence.
A Childcare Power of Attorney, to fill the guardianship gap
What would happen if both parents were to pass away or become incapacitated? Who would care for the kids?
Of course, as mentioned above, a properly drafted will appoints guardians. But a guardian only has legal authority over the children after a judge officially appoints them. That leaves a gap of time where there may be nobody who can make legal decisions for the children – anything from signing a school permission slip, to enrolling them in school, or consenting to medical treatment.
That’s where a Childcare Power of Attorney comes into play. This document, under N.J.S.A. 3B:12-39, lets parents make a plan to close that gap. This document lets you designate emergency guardians who can have legal authority right away if something happens to both parents. It is a critical tool that every parent should have in place. I include this document in every estate plan for families with minor children.
A few things to keep in mind about this document – by law, it is only valid for one year from the date it is signed, so it must be renewed every year. My office will stay on top of this for you, sending you timely reminders to renew the Childcare Power of Attorney each year and assisting you in doing so, if you wish.
This document is so important that I want to ensure everyone can access it. Click here to download a fillable PDF version of this document. It must be notarized. If you have questions or would like assistance completing this Childcare Power of Attorney, please reach out. I can assist you in executing this document as a standalone service or as part of a complete estate plan.
Financial Power of Attorney, for your finances
Estate planning isn’t just about what happens after your death. A comprehensive estate plan addresses incapacity – what happens when you can’t make decisions and sign documents yourself.
A financial power of attorney allows you to designate someone, called your “agent,” to carry out financial transactions in your name if you are incapacitated. Even if you are in the hospital, there are a constant stream of things that need your signature or approval. Things like tax returns, renewing insurance policies, or even managing your business affairs. With a properly crafted and executed power of attorney, someone you trust can sign your name to keep your financial life on track until you recover.
Advance Health Care Directive, for your medical decisions
An Advance Directive combines two important functions into one document:
First, you can appoint someone as your Health Care Representative, to make medical decisions for you if you can’t communicate with your healthcare providers yourself.
Second, you can make your end of life wishes known. People have differing opinions on whether they would want artificial life support, such as a ventilator. There is no right answer. This document allows you to make your wishes known, in a legally binding way.