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Securing Your Family's Future: The Importance of Estate Planning for Young Families

Securing Your Family's Future: The Importance of Estate Planning for Young Families

February 01, 2024

Creating an estate plan might not be at the top of the to-do list for young families, but it's a crucial step in securing the financial well-being and future of your loved ones. Often, people associate estate planning with the elderly or the wealthy, but in reality, every family can benefit from having a well-thought-out plan.

Let’s explore the reasons why young families should prioritize estate planning and how it can offer peace of mind and protection during the unexpected.

Protect Your Children's Future:

One of the most important reasons for young families to have an estate plan is to ensure the well-being and financial security of their children. In the unfortunate event that both parents pass away, an estate plan can designate legal guardians for minor children, as well as structure funds to help those who will care for them.

When I talk to clients that have young children, I remind them that if something were to happen to them, it is important to name someone in their estate plan who they trust to raise their children with the values they want to instill.  Otherwise, the court can potentially decide who cares for the children.

Talking about death, especially at a young age with young children, is never fun.  But it is necessary.  And we can help.

Choosing where your money goes:

Even if you're just starting to build your wealth or you don’t think you have enough money or “stuff” to merit an estate plan, you still have things that will need to go to others if you pass away.

While many assets can transfer via either proper beneficiary designations or titling of ownership, I often talk to my clients- even my younger clients- about the importance of having a last will and testament.  It’s like having an airbag in your car: you hope you never have to use it, but it is there to help direct where things go, especially things that do not have a beneficiary or a title.

Giving your loved ones clear instructions to follow, spelled out via the beneficiary designations and a will, can help simplify what otherwise could become a complex and time-consuming process for your family at a very difficult time.

Avoiding probate and reducing costs:

Estate planning allows you to structure your assets in a way that minimizes the impact of probate. Probate is the legal process of validating a will and distributing assets, and it can be time-consuming and expensive. By establishing proper beneficiary designations, titling of ownership of assets, or using trusts where appropriate, you can potentially avoid probate and reduce the associated costs, ensuring a more efficient transfer of assets to your heirs.

Again, we can walk you through your options and refer you to attorneys and other resources who can help you finalize your documentation.

Providing for Your Spouse:

An estate plan can also include tools to help you provide for your spouse in the event of your passing. This may include life insurance, investment accounts and retirement accounts. With a well-crafted plan, you can ensure that your spouse has the necessary resources to maintain your standard of living and potentially keep growing your assets.

Managing financial and healthcare decisions:

In the event of incapacitation, other estate planning documents that are important as it pertains to your finances are durable powers of attorney for legal and financial issues.  These key documents allow you to appoint someone to make legal and financial decisions on your behalf- such as paying bills, accessing or managing your bank and investment accounts, or selling property.

Estate planning isn't just about finances—it also helps define and secure your desires regarding healthcare decisions. A healthcare directive or power of attorney allows you to appoint someone you trust to make medical decisions on your behalf if you become incapacitated. This helps ensure your wishes regarding medical treatment and care are honored.

I am honored to get to know many of our clients on a deep, personal level that allows us to have tough conversations about things like estate planning. 

Having a proper estate plan is a vital component of responsible financial management and comprehensive financial planning- and it is equally important for our clients with young families as it is with clients approaching or in retirement.

Contact Impel Wealth Management to talk about how an estate plan could bring you and your loved ones peace of mind.  We felt this was an important topic to cover as we all continue Moving Life Forward together.

© 2024 Nathan Ollish

The views stated are not necessarily the opinion of Cetera and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results.

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For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera Advisors LLC nor any of its representatives may
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