Often, young parents in Utah are engrossed in the daily whirlwind of life—caring for children, managing careers, and making important family decisions. Amid these challenges, planning for the unthinkable, such as sudden incapacitation or death, may seem remote.
However, it’s precisely during these foundational years that setting up a sound estate plan becomes crucial. Here are some of the most common questions that young Utah parents have about estate planning:
Q: What is Estate Planning?
A: Estate planning isn’t just about distributing assets or wealth after one’s demise. It’s a comprehensive plan ensuring that if something happens to you, your children and assets are taken care of in the manner you envision.
Q: Why do I need an estate plan if I’m young and healthy?
A: Even if you’re young and healthy, there’s always a chance of something unforeseen happening. If you die without an estate plan, the court will decide how your assets are distributed and who will care for your minor children. This may not be in accordance with your wishes.
Q: What should I include in my estate plan?
A: Your estate plan should include the following documents:
- A will names your executor and guardian for your minor children. It also specifies how your assets should be distributed after your death.
- A trust is a legal arrangement that allows you to transfer ownership of your assets to a trustee. The trustee will manage the assets and distribute them to your beneficiaries according to your instructions.
- A power of attorney gives someone else the authority to make financial decisions on your behalf if you are unable to do so.
- A healthcare directive outlines your wishes for medical care if you become incapacitated.
Q: How do I create an estate plan?
A: The best way to create an estate plan is to work with an experienced Utah estate planning attorney. An attorney can help you to understand your options and create a plan that meets your specific needs.
Q: What are the benefits of having an estate plan?
A: There are many benefits to having an estate plan, including:
- You can ensure that your assets are distributed according to your wishes.
- You can protect your children and ensure that they are financially secure.
- You can avoid family conflict.
- You can minimize estate taxes and probate costs.
Q: What are some special considerations for Utah parents?
A: Utah parents should be aware of the following special considerations when creating their estate plans:
- Utah has a unique law called the “Utah Minor’s Trust Act” (UMTA). The UMTA allows parents to create trusts for their minor children that will terminate when the children reach a certain age.
- Utah also has a law called the “Utah Uniform Prudent Management of Institutional Funds Act” (UPMIFA). The UPMIFA provides guidance to trustees on how to manage trust assets prudently.
Q: How often should I update my estate plan?
A: You should update your estate plan whenever there is a major life change, such as marriage, divorce, the birth of a child, or the death of a loved one. You should also review your estate plan every 3-5 years to make sure that it still meets your needs.
Q: What are some of the most common estate planning mistakes that young parents make?
A: Some of the most common estate planning mistakes that young parents make include:
- Not having an estate plan at all.
- Naming a guardian for their minor children without discussing it with the person they choose.
- Not updating their estate plan after major life changes, such as marriage, divorce, or the birth of a child.
- Not having a plan in place for how their digital assets (e.g., social media accounts, online banking accounts, etc.) will be handled after they die.
Q: What can I do to make the estate planning process easier for my family?
A: There are a few things you can do to make the estate planning process easier for your family:
- Talk to your family about your estate planning plans. Let them know who you have named as your executor, guardian, and trustee.
- Provide your family with copies of your estate planning documents.
- Store your estate planning documents in a safe and accessible place.
- Work with an estate planning attorney who can provide guidance and support to your family after you die.
Life is unpredictable. And while thinking about worst-case scenarios isn’t pleasant, being prepared ensures that your loved ones are protected.
If you are a young parent and haven’t yet considered estate planning, now is the time. The Law Office of Chris W. Chong is here to support and guide you every step of the way.
Don’t leave your family’s future to chance. Reach out to one of the leading Salt Lake City estate planning attorneys and take the first step towards securing your family’s future today.
