Estate planning for young families

Customized estate plans based on your family’s unique needs

Every family can benefit, not just for the wealthy 1%; and not just for the elderly. Estate planning maximizes the lifespan of your assets; protects your assets for your children; prepares you for navigating difficult life situations; reduce the burden on your children; ensures end-of-life care instructions.

What does Estate Planning for families consist of?

A proper estate plan is customized to your family based on your particular wants, needs, life situation, and local laws. Typically the plan will consist of one or more of the items listed here.

Will

Drafting a will is crucial as it allows you to specify how your assets should be distributed and who will be the guardian of your children if something happens to you and your spouse.

Guardianship

Choose responsible and trusted individuals who would take care of your children in case both parents pass away. Discuss this with the potential guardians and make sure they are willing to take on this responsibility.

Life insurance

Consider obtaining life insurance policies for both parents. This can provide financial support to your family in the event of an untimely death and help cover expenses such as childcare, education, and mortgage payments.

Trust

A trust can be beneficial for managing and distributing your assets. By setting up a trust, you can specify how and when your assets should be distributed to your children, ensuring their financial security.

Power of attorney

Designate someone you trust as your power of attorney to make financial and legal decisions on your behalf if you become incapacitated.

Healthcare directives

Separate from power of attorney, create healthcare directives to outline your medical preferences and appoint a healthcare proxy.

It's important to review  and update the estate  plan periodically

Life circumstances change, so it’s important to review your estate plan periodically. Major life events like births, deaths, divorces, or significant financial changes may necessitate updates to your plan.

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Frequently Asked Questions

In Pennsylvania, a trust can be established to provide for the care of minors.

Testamentary Trust: A common approach is to create a testamentary trust within a will. In the will, you can designate a trustee who will be responsible for managing and distributing assets for the benefit of the minors. This trust becomes effective upon your passing and can provide for the ongoing financial support of the minors until they reach a specified age or milestone.
Trustee Selection: It’s crucial to select a trustee who is trustworthy, capable, and willing to fulfill the role. This person will have the responsibility to manage the assets in the trust and make decisions in the best interest of the minors. Consider choosing someone who has financial acumen and is capable of handling the ongoing administration of the trust.
Specify Trust Terms: The terms of the trust should clearly outline how the assets are to be used for the care of the minors. This may include provisions for education, healthcare, housing, and other essential needs. You can also specify the age or circumstances under which the minors will receive full control of the trust assets.
Consider a Trust Protector: A trust protector can be appointed to oversee the trustee’s actions and ensure they act in accordance with the trust terms. This additional layer of oversight can provide added protection and peace of mind
Funding the Trust: To ensure the trust has assets to support the minors, you can transfer assets into the trust during your lifetime or through the terms of your will. It’s important to work with an attorney to properly structure the funding of the trust and ensure that it aligns with your estate planning goals.
Regular Review and Updates: Life circumstances and the needs of the minors may change over time. It’s important to review and update the trust periodically to ensure it remains relevant and effective in meeting the needs of the minors.

Consulting with an estate planning attorney in Pennsylvania is crucial to establish a trust that aligns with your specific goals and meets the requirements of state law. They can guide you through the process and help create a comprehensive plan to care for the minors in your life.

Creating a living trust in Pennsylvania (PA) can offer several benefits for estate planning purposes. Here are some reasons why individuals may want to establish a living trust in PA:

Avoiding Probate: One of the primary reasons people opt for a living trust is to avoid probate. Probate is the court-supervised process of validating a will, which can be time-consuming, costly, and subject to public record. With a living trust, assets held in the trust can pass directly to beneficiaries without going through probate, saving time and potentially reducing expenses.
Privacy: Unlike probate, which is a public process, a living trust allows for greater privacy. The details of the trust, including the assets it holds and the beneficiaries, generally remain private.
Incapacity Planning: A living trust enables individuals to plan for incapacity by appointing a successor trustee who can manage their affairs if they become unable to do so themselves. This can provide continuity and ensure that the individual’s financial matters are handled according to their wishes.
Flexibility and Control: With a living trust, individuals can maintain greater control over how their assets are managed and distributed. They can specify detailed instructions regarding when and how beneficiaries should receive their inheritances, set conditions for distributions, and even provide for special needs beneficiaries.
Tax Planning: While Pennsylvania does not have an estate tax, a living trust can still offer tax planning advantages, especially for individuals with larger estates. It can help minimize federal estate taxes and provide flexibility to maximize tax-saving opportunities.
Streamlined Asset Management: By consolidating assets within a living trust, it becomes easier to manage them. The trustee can oversee the trust assets, ensuring that they are properly maintained, invested, and distributed according to the trust terms.

It’s important to note that each individual’s circumstances are unique, and the benefits of a living trust may vary. Consulting with an estate planning attorney in Pennsylvania can provide personalized advice based on your specific goals and needs. They can help determine if a living trust is appropriate for your situation and guide you through the process of creating and funding the trust.