A Bloomington, IL estate planning lawyer understands that when most people think of estate planning, they are under the impression that only older people or very rich people attend to these matters. What they don’t realize is that every adult should have an estate plan in place, even young adults, in order to address issues such as what should happen to what you own in the event you become incapacitated or pass away. This is especially true for new parents. You now have a baby to take care of, but it is important to have legal plans in place to make sure your child is taken care of – according to your wishes – should something happen to you. The following are some questions that many new parents have when they come to Pioletti Pioletti & Nichols
Why should new parents create a will and/or other estate planning instruments?
Wills are an essential part of anyone’s estate plan, no matter what your age, but wills are particularly important for parents of minor children because a will is where you name the person you want to be the legal guardian of your child. This is the person who you want to raise and care for your child if you are no longer here to do so. If you have not legally named a guardian, then the courts will do it and the result may not be the person you would have chosen.
What else should I include in my will?
In addition to naming a guardian, you also will want to choose someone to be the executor of your estate. This will be the person responsible for filing the will with the probate court, paying all debts of the estate, and distributing assets and property to beneficiaries that you have named in the will.
What about trusts? Are these important in an estate plan?
Your will is the place where you name your child’s guardian and it is also a good place to specify who you want to receive personal items, such as jewelry, household items, and even digital assets. When it comes to financial assets, especially those set aside to care for your child, establishing a trust may be more beneficial. Typically, the items that are put in a trust are protected from the probate process, including protection from someone contesting who the beneficiary is.
Beneficiaries also have immediate access to funds upon your death, unlike assets bequeathed in a will, which must go through the probate process first.
A Bloomington estate planning lawyer can help you determine what type of trust is best for your situation, advise on choosing a trustee, and help create any stipulations you want in the oversight of the trust, including how and when funds in the trust should be dispersed and what type of expenses they can cover.
What other types of assets should be addressed in my estate plan?
In addition to designating beneficiaries for trusts and wills, it is also important to designate beneficiaries for other types of assets you may have, such as savings accounts, brokerage accounts, retirement accounts, and life insurance policies. You will want to update these accounts when your baby is born. Many of these accounts often have a primary beneficiary and secondary beneficiary, allowing you to name your spouse as the primary, but your child as the secondary in the event your spouse is no longer alive at the time of your death.
Do I need an attorney to create an estate plan?
There is nothing that legally requires you to have a Bloomington estate planning lawyer create your estate plan, however, Illinois estate laws can be complex and any errors could seriously jeopardize how you want your estate dispersed, including your choice of guardian and executor. To ensure you have a legally solid-clad estate plan in place that will provide for your baby when you are no longer here, call Pioletti Pioletti & Nichols today.