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Why new parents need an estate plan

If you and your spouse or partner have recently become new Florida parents, congratulations! Nothing surpasses the thrill and happiness of welcoming a new child into your family. But have you considered that along with the baby furniture, baby clothes, car seat, etc., you should now also have a new estate plan

Before you shrug off that idea, thinking that only rich people need estate plans, consider this. Regardless of how much wealth you currently possess, you now have a new child and heir for whom you must be responsible for the next 18+ years. And even though you and your spouse or partner are relatively young people, what happens to that child if you should both die in a sudden catastrophic accident? Who would then care for him or her? Would the money be there to provide for his or her needs and get him or her through school?

Estate planning documents

These are precisely the issues that your estate plan can and should address. At the very least, both you and your spouse or partner should make a Last Will and Testament in which you specify who you want to care for your child in the event of your mutual untimely deaths. Additional estate planning documents you may wish to consider include the following:

  • Life insurance policies
  • School tuition plans
  • Minors’ trusts specifying the ages at which your children will receive their inheritances
  • Special needs trusts for any of your children who may require special care during their respective lifetimes

Trust advantages

Trusts offer you and your children a number of advantages, including the following:

  • Since your children cannot own anything in their own names until they reach the age of majority, trusts provide a method by which they can still benefit from those assets even though they do not own them outright.
  • If you name yourself as the trustee, you can still control the trust assets just like you do now.
  • You can designate a successor trustee to take over management of the trust should you become unable to do so due to injury, illness, incapacity or death.
  • You can name the trusts as beneficiaries of your insurance policies, thereby funding the trusts in the event of your untimely death.
  • In terms of a special needs trust, it can ensure that your child remain eligible not only for the benefits and assistance (s)he currently receives, but also those that could become available in the future.

All in all, setting up an estate plan just makes good sense for new parents. Not only does it provide for your children in virtually all future circumstances, it will give you peace of mind knowing that this is one more way you have shown yourself to be a responsible and loving parent.

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Day Law Your Hometown Attorneys

4108 Deltona Boulevard
Spring Hill, FL 34606

Toll Free: 888-326-9553
Phone: 352-200-2382
Fax: 352-684-4529
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