It is often very clear to grandparents that they need to make an estate plan, simply because of the stage they are at in their life. They may have received a significant medical diagnosis that makes it clear to them that they are drawing closer to the end of their life, for example. They can see how many different beneficiaries they have to consider as the family grows, including children and grandchildren.
But even middle-aged parents should still make an estate plan. They may feel that they are not that close to using the plan yet, but there are many reasons why having the plan in place is still important. Below are two examples.
Choosing a guardian
First and foremost, parents need to be aware that they could pass away unexpectedly, such as in a car accident or due to a sudden illness. If so, they need someone to care for their child. Selecting a guardian gives them a chance to choose that person directly and ensure that their child gets the care and support they need as they grow up.
Setting up a trust
Next, many middle-aged parents have children who are still minors and will be for years. As such, they may want to put their assets into a trust, which can then distribute those assets at a certain age. If someone’s child is in middle school or early high school, for example, they may want to set up a trust to hold assets until they turn 25 or 30.
These are just two examples of many reasons why making an estate plan is important. If you have not done so yet, it may be time to start considering your legal options.
