It’s never too early for parents in Connecticut to create an estate plan, even if their children are very young. Starting the conversation about what would happen to your possessions and money in the event of your death is not easy, but it’s important.
Following are some steps to think about when setting up estate planning for your family.
Name a trustee
One of the most important decisions you’ll make when creating your estate plan is naming a trustee. This person will be responsible for managing your assets and distributing them according to your wishes. You’ll want to select a financially responsible person you trust implicitly. This person should be honest, reliable, and someone you know will follow your instructions to the letter.
Calculate how much life insurance you’ll need
If you have young children, it’s especially important to have enough life insurance to provide for them financially in the event of your death. They will need money for things like food, shelter, clothing, education, and more.
Determining the amount of insurance to get can be tricky. You’ll want to consider factors like your income, debts, and other financial obligations. You’ll also want to think about how long your children will need financial support.
Create a will
Making a will is an important part of estate planning. A will is a legal document that states how you want your possessions and money to be distributed after your death. It’s important to have a will because it gives you control over what happens to your belongings. If you die without a will, the state will responsible for figuring out what happens to your estate.
Figure out beneficiary designations
Another important aspect of estate planning is beneficiary designation. This refers to who owns your accounts (such as your bank accounts, investment accounts, etc.) and who you’ve designated as the beneficiaries of those accounts.
Beneficiary designations are important because they override anything that’s stated in your will. So, if you have a specific person in mind that you want to receive your bank account, for example, you’ll need to designate them as the beneficiary. Otherwise, the account will go to whoever is listed as the primary beneficiary in your will.
Estate planning is a complex process, but it’s important to put time and effort into it. By taking care of these things now, you can give your family peace of mind in the event of your death.