An Estate Planning Reminder for Parents with Minor Children

I just tweeted an article by a Boston financial planner, Dee Lee, who discusses the importance of parents with minor children getting their estate plans in place.  I strongly feel that setting up an estate plan with protections for minor children is just as important as the other aspects of parenting for which we take so much care and concern.  I have written about this here and here.   Just like finding the right pediatrician, car seat, and child care, an estate plan is an essential protection for your children.  This writer said it so well, that I am posting here some highlights — and  a good reminder — from her article:

“Experts estimate that less than 35% of individuals have wills. This is one thing people procrastinate about, especially parents with young children.

These parents are focused on the safety issues around their home to keep the kids safe but have not done any estate planning to keep the kids safe if something should happen to them.

At the very least, you need a will naming guardians for your children if something should happen to you and your spouse.

Without a will you are leaving behind a messy situation to be handle by whoever the court appoints. And if there is life insurance involved I can guarantee even your cousin Vinny will offer to take the kids.”

By Dee Lee, Where There’s a Will, There’s A Way, August 27, 2015

 

 

A Celebrity’s Daughter’s Death and Estate Planning for Young Adults

A few weeks ago, I wrote about the importance of having your now adult child get his or her estate planning documents prepared.  The idea may seem unnecessary at first blush — your now 18 year old (or twenty-something) “adult” child has just reached the legal age of adulthood and likely has yet to accumulate significant assets.  He or she may in many ways seem still like a child to you, and not yet ready for important adult documents.  However, under the law, they are adults, and you are no longer their default decisionmaker nor are you automatically granted access to your adult child’s medical records.  This is an important time for your child to designate whom he or she wishes to make these types of decisions.

A celebrity death serves as reminder to us of all the necessity of getting these documents in place.  Bobbi Kristina Brown, the twenty-two year old daughter of Whitney Houston and Bobby Brown, died recently after several months in a comatose state.  You can read more about the tragic story here and here.  Unfortunately, her lack of incapacity planning documentation and resulting legal protections (not unusual, given her age) resulted in a family legal fight during her incapacity.  A reminder to talk with your young adult children about the necessity of getting, at a minimum, their incapacity documents in place under the counsel of an estate planning attorney.

Estate Planning and Our Four Legged Friends

Yesterday I visited Indianapolis’s Cat Haven, a wonderful local non-profit that provides homes for abandoned cats.  Many of these cats are elderly (10 years old or older), which gave me pause to consider how a cat that age would end up abandoned.  It seems likely to me that those animals may very well have been loved by an owner who passed away, leaving no one to care for the beloved pet.

High-profile estates, such as Joan Rivers, often provide for well-funded pet trusts.  However, planning for your pet to be cared for upon your death does not  require large sums of money, great wealth, or celebrity.  Pet Trusts are legally-enforceable instruments under Indiana law.  You can set aside a certain sum of money to provide for your pet(s) in a Pet Trust, designating a person or persons to care for your pet(s) and providing funds for your pet’s welfare.  Upon your pet’s death, you can direct for any remaining Pet Trust funds (not used for your pet’s benefit during his lifetime) can be distributed to your human beneficiaries or charities.  Even if you do not wish to provide for a Pet Trust, your Last Will and Testament is an ideal place to identify the person(s) who will care for your pet after your death.   I enjoy assisting estate planning clients with Pet Trusts and planning for beloved pets and would be happy to answer questions about planning for pets.

Here are some additional sources of information about planning for a pet’s care in the event of the owner’s death:

Humane Society of the United States: Providing For Your Pet’s Future Without You

ASPCA: Planning for your Pet’s Future

Prof. Gerry W. Beyer: Frequently Asked Questions About Pet Trusts