We are so focused on building wealth over time, but, what if something happens to us? Are our children’s futures protected?
Estate planning is one of those things parents put off when it’s sometimes too late, and the consequences can be devastating.
Remember the story of Cinderella, the orphan mistreated by her evil stepmother and stepsisters? Consider an alternative ending: A legally happily ever after, which starts with an estate plan and ends with Cinderella keeping the house.
It’s not just about money. It’s all about protecting your children.
Pamela Maass Garrett is an estate planning attorney, CEO of Law Mother LLC, and the author of the international best-selling book Legally Ever After The 6-Step Plan to Protect Your Children's Happiness and Future. She is dedicated to helping parents protect their children and assets while building their legacy.
I had a chance to learn more in this interview.
Why is it important for families to make plans for protecting their children's future?
It is important for families to make an estate plan for protecting their children's future because it ensures that their children are taken care of in case of an untimely death or disability. An estate plan can provide for the financial security of the children and can also provide guidance for how the children should be cared for. The estate plan can include a trust, guardianship and other protective measures to ensure that the children are provided for in the future. Estate planning also helps to avoid potential conflicts between family members or beneficiaries in the future. In our Estate Planning in Colorado law firm we help families put an estate plan in place, so that parents can rest assured that their children will be taken care of in the event of their death or disability.
What are the six steps to get started in estate planning?
The six-step plan detailed in the book Legally Ever After, is a roadmap to protect your children’s future and happiness through L.E.G.A.C.Y:
L - Legal Guardians. Naming legal guardians for your children in the event both you and your children’s other parent pass away or become incapacitated is one of the most difficult decisions a parent must make, but it’s also one of the most important decisions. While the decision might be difficult, if you don’t appoint a guardian, it will be up to a judge, a stranger, to make that decision for you. The dangers of having the court make these decisions are the timeframe, cost, and ultimately losing the ability to choose who ends up caring for your children.
E - Economic Support. Provide for your family’s long term needs through setting up a Living Trust or a Will.
G – Guidance. Express your wishes for your care of life and for the care of your minor children
A - Asset Protection. Plan for Wealth Preservation.
C - Carry Through, Communicate & Update. Once you create an estate plan, you need to carry through, communicate and be sure you notify your trusted guardians and trustees of all your plans. They need to know where your original documents are, and which documents
should be used in what situations. Your plan also needs to be updated throughout your life as circumstances change.
Y - Your Family Legacy. Pass on your values, insights and stories.
What is the difference between a will and a trust?
A will and a living trust are two different legal instruments used to transfer property and assets upon death. A will is a document that outlines how you would like your property and assets to be distributed after your death, while a living trust is a legal entity that is created while you are still alive and designates who will receive your assets when you pass away. The main difference between a will and a living trust is that a living trust takes effect immediately and allows for the transfer of assets without the need for probate court proceedings, which can be lengthy and costly. Wills, on the other hand, must be approved by a court before the assets are distributed, and this process can take months or even years to complete. Additionally, a living trust is a private document, while a will is a public document that can be accessed by anyone.
What is a Caregiver's Guide and why should families have one
An Instructions to Guardians Memorandum (aka Caregiver’s Guide) provides guidance to the guardians of your minor children if you are unable to care for your children due to death or disability. The memorandum gives guidance with respect to those decisions you consider most important when raising our children, including education, religion and discipline, children-rearing practices, financial considerations, and your wishes regarding your children’s care.
This article includes excerpts from the International Bestselling Book, Legally Ever After, written by Estate Planning Attorney Pamela Maass Garrett.
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