For many people, the phrase “estate planning” conjures an image of retirees carefully strategizing how to pass down their accumulated wealth. However, according to Gary M. Schuster, a partner at Walden-based J&G Law who concentrates in estate planning and administration, business law and nonprofit law, young families equally need to be taking steps to create an estate plan for their children if one or both parents tragically pass away.
“Starting a family and welcoming a new human into the world is one of life's most magical and gratifying moments,” says Schuster. “More down-to-earth than that is the shopping list for diapers, onesies, pacifiers, and all that other gear. That list should include a Last Will and Testament because as beautiful as life can be, it is also unpredictable.”
Since a Last Will and Testament covers important issues like what will happen to a home, bank accounts, and valuable or sentimental belongings in the event of a person’s death, it is the first document that parents need to put in place for their children. Here, Schuster explains a few of the biggest reasons that young families need a will, especially while their kids are young.
Making Property Inheritance Smoother
“A Last Will and Testament disposes of one’s property after death. If a person does not have a will, New York State law dictates what happens to their property,” says Schuster. “Where a person dies leaving a spouse and children, the surviving spouse gets the first $50,000 in value. The remainder is divided equally between the surviving spouse and all of the children.”
While that math may seem simple on the surface, Schuster says that there are difficulties that can arise with this process, particularly when children aren’t yet of age to take on the legal responsibility of what they inherit.
“This can result in a child owning an interest in a home or other real estate. This is problematic because the child is too young to enter into a contract to sell or otherwise deal with the real estate,” explains Schuster. “In such cases, a court will appoint a guardian for the child, causing expense and taking time. This problem is eliminated when couples make wills leaving all their property to the surviving spouse. But that needs to be done in a will. That is not the law.”
Creating a Plan for Caretaking and Financial Guardianship
“A will is also the place where you appoint guardians to take care of your children should both parents pass away,” says Schuster. While one might assume that the guardian chosen for caretaking is the one that will handle all their inherited property, Schuster says that’s not a requirement.
“You can also divide responsibilities so that the children will live with one person, but you choose another person (a “Trustee”) to handle their money,” he says.
Appointing an Executor to Manage the Estate
Many people are also familiar with the concept of an executor, the person who is given the responsibility for managing the estate. While an executor is an important role for any size of estate, it can be particularly vital to choose an executor who can be as impartial as possible where minor children are involved.
“When no one is appointed as executor, it is an opportunity for relatives to fight about it,” says Schuster. “Unfortunately these fights are somewhat common, even when there is very little property to fight about.”
Since a will can be customized to fit the exact needs and desires of a family, there’s no need to leave the future financial stability and personal wellbeing of young children up to the state. Schuster advises that parents take the time to work with a professional to create a will that is legally sound and accounts for all the unexpected moments. “Like most states, New York has very detailed requirements as to the form and content of wills and the way they are to be signed,” he says. “It is not something you should do at home. You should definitely seek professional assistance in making a will.”
To learn more about the law firm of J&G Law, visit Jglaw.law.
