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Estate Planning: New Parents Should Plan

Estate Planning: New Parents Should Plan

Christopher Yugo, Times columnist

Question : Our son and his wife are expecting their first child and our first grandchild. We’ve already discussed including the grandchild in estate planning, but my son says estate planning isn’t even on his radar right now. What can we do to persuade him to see a lawyer?

A: I would like to tell you that your son is the exception to the rule but, unfortunately, I meet him often.

The most common reason I hear from young adults for why they haven’t planned is that they don’t have much. They think that if they don’t have much wealth, why bother planning?

I guess that makes sense when you consider that estate planning is all about passing your assets on to your loved ones. However, as you all know, testamentary instructions are only part of estate planning. Of course, this is probably the main reason people plan, but it is by no means the only one.

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When trying to convince a new parent to plan, the first thing I would point out is that naming a guardian is very important. Bad things happen to good people all the time. If something tragic happens, who do you want to raise your children? I’ve written this before, but I think it’s worth repeating: Not everyone is cut out to be a parent. Don’t you want to have a say in who should take your place if your children need a guardian? Additionally, guardianship disputes over minor children are rare, but they do occur. By including instructions, you have a say in the fight.

Remember, if you die without a will, the state will provide you with one through its intestacy laws. State testamentary instructions are universal and rarely meet everyone’s needs. Additionally, intestacy laws do not provide for a trust for a minor in case a young person inherits the money. If you plan, you can set the conditions for when and how the minor will receive the funds.

Additionally, even young parents need a Power of Attorney (POA) and Health Care Representative Designation (HCRD). Young parents can experience medical emergencies and become disabled, just like us older people. When each of my children was 18, I wrote POAs and HCRDs for them, just in case. They are young, strong and healthy but you never know.

It’s hard to get people who’ve lived busy lives to think about this stuff, so imagine how hard it is to get someone who’s just starting out to do it. I suggest you suggest they plan, but don’t hit them over the head with it. Don’t make them want to dig their heels into the sand. I think it’s a mistake if your son doesn’t plan, but it’s unlikely this will be his first or last.

Christopher W. Yugo is an attorney in Crown Point. Chris’s article on estate planning appears online every Sunday at www.nwi.com. Direct questions to Chris in care of The Times, 601 W. 45th Ave., Munster, IN 46321 or [email protected]. Chris’s information is intended to be general in nature. Specific legal, tax, or insurance questions should be directed to your attorney, accountant, or estate planning specialist.