When parents are busy taking care of the day-to-day needs of their young children, they’re not often thinking about asset protection. After all, many people start out in their young lives without a lot of assets to speak of. However, there are many considerations that you need to make if you have young children to take care of. Protecting what assets you do have and preparing kids for the future if you should suddenly pass away is very important.
Many young married couples haven’t really given much thought to asset protection. For one thing, they often believe that they cannot afford the cost of undergoing estate planning. However, often it is just improper or erroneous information that keeps people from properly planning their estate. Not going through the process of taking care of these matters can cost your loved ones a lot more money and heartache in the end.
One example of a very important detail to consider as soon as you have children is who will take care of them if you become incapacitated? In the event that you pass away while your children are still minors, who will they live with? Who will decide about their medical treatments, if needed?
If you own a home, what would happen to your property if you were to become incapacitated or die? Who will pay the bills on behalf of your children? Do you have a life insurance policy? Who will take possession of your policy and manage the proceeds from it if your children are still minors? When will your children get the property and money that you have left for them? Who will take care of those assets and manage them until such time as your children receive them? Who can you trust to do the best for your kids? Most importantly, how will you protect your children from creditors and people who seek to do them harm?
Even if you don’t think you have that many assets to protect, it is important to start planning your estate once you have children. No matter how much money or possessions you have to pass along, you want to make sure that they are protected and maintained in a way that will allow your children to enjoy what you have left for them. Of course, the most important thing is to protect them and make sure they have a safe haven if you should suddenly pass away.