There are many factors to consider when drawing up your estate plan in New York. One of the most crucial will be whether to include your children. Many legal and financial experts highly recommend including them in your estate plan. This will be especially true if they are minors. Once filed, your plan can give them the maximum level of protection.
Why do you need an estate plan?
Proper estate planning is particularly crucial if you have young children that will require care if you should pass away. This will be your main opportunity to have a say in who will care for them if you are deceased or disabled. It will also give you a chance to decide how and when your assets will be distributed to them.
Your first step should be to choose a person who will serve as legal guardian for your children. Your top choice should be supplemented by others who can step in if your primary caretaker should pass away. The caretaker that you appoint will be responsible for their health and safety. They will also oversee all your children’s legal needs.
The person that you choose for this role should be someone who has values similar to yours. If you nominate a married couple, you should also include instructions on what should happen if they divorce. Other considerations may include their age, level of income and where they reside.
How can you distribute your assets?
Creating an estate plan should be a high priority for anyone who becomes a new parent. Several methods can be employed. You can do so using the outright method. This means that your children receive everything when you pass away.
Your children may still be very young or not quite at a mature age. In this case, you can consider a Uniform Transfers to Minors Act (UTMA). This will enable them to receive your assets when they reach a mature age, usually set at 25. The guardian that you choose will manage the assets in the meantime.