Creating a Will is an essential step on the road to becoming parents. When you have your first child, it is critical to have a Will in place so that your child is properly provided for.
A Will, sometimes called a Last Will & Testament, is much more than a way of distributing your property when you are gone. No matter how large or small your estate, if you die without a Will you will lose the right to name who would be guardian of your minor children.
Until a child is eighteen years old, they cannot inherit property in their own name. If money is left to a minor child directly, the probate Court will need to appoint a property guardian to manage the child’s money to age eighteen. Where both parents die an untimely death, the Court would have to choose a guardian without any guidance from you. The Court appointed guardian might not have been your first choice.
New parents may also consider discretionary Trusts. The purpose of this Trust is to provide for and protect the child beneficiary who may, without oversight, quickly spend or lose any inheritance. A discretionary Trust can be created in your Will where you would name a Trustee to manage your child’s inheritance until they are financially responsible (e.g. upon reaching age 30).
To determine what type of estate planning is appropriate for you and your family, let us help you make the right decision today!
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