30 Jan Estate Planning: Why It’s Not Just for Wealthy Families
Every family needs estate planning, no matter which tax bracket they fall into. Parents in particular need to take steps like naming a guardian, writing a will, and providing for the future. You don’t have to be rich to do things like set up a trust fund for your children. A solid estate plan will protect your personal assets during your lifetime and preserve more wealth for your family’s future. Let’s go over the basics of estate planning for families.
Don’t You Have to Be Rich to Need an Estate Plan?
No, not at all! A simple estate plan contains the basic legal documents that every adult needs, like a will and a power of attorney. If you have children, you might want to set up a trust fund to provide for their education. If you own a business, you might want to place your LLC in an irrevocable trust to protect your personal assets against lawsuits. Estate planning also includes taking steps like naming a beneficiary for your bank account or filling out a transfer-on-death form for the title of your vehicle.
Three Important Estate Planning Steps for Families
1: Writing a Will
This is a step that every adult should take as soon as they turn 18. No matter your age or how much money you have, writing a will allows you to name guardians, beneficiaries, and more. If you haven’t accumulated much wealth yet, don’t worry—naming a beneficiary doesn’t mean they’ll inherit your debt.
If you have children, writing a will is how you appoint a legal guardian. If you don’t take this important step, your kids could end up in foster care or being raised by a relative you don’t trust. You can also appoint a caregiver for your pet, so they won’t be neglected if anything happens to you.
2: Setting Up a Trust
Another great way to protect your children is to set up a trust. For instance, a lifetime asset protection trust will safeguard your children’s inheritance against lawsuits and creditors. And a revocable living trust is a great way to build generational wealth and keep important assets—like your family home—in the family. A trust can also provide for the care of minor children if you should die before your kids are fully grown.
And yes, there are pet trusts, too! By funding a pet trust, you can make sure that your pet’s caregiver has the money they need to pay for pet food and veterinary care.
3: Appointing a Power of Attorney
Appointing a POA agent doesn’t mean giving up your personal freedom. There are many types of power of attorney documents, but each one is limited to the terms you set out in the agreement. For example, if you are in the military and deployed overseas, you can use a parental power of attorney to give another family member or caregiver authority over your children during your absence.
A healthcare POA agent can receive private medical information and make medical decisions on your behalf. This person could be your husband or wife, because you trust them to make the right choices. However, this can be overwhelming for a loved one in some cases. You can spare your spouse the burden of decision-making by appointing an impartial third party and leaving clear directions.
Estate Planning Services for Arizona Families
At Phelps LaClair, estate planning is all we do. We’re a family business, and our mission is to help other families plan ahead. Over the years, we’ve learned exactly how important estate planning is for every family, no matter how wealthy they are. Working families, military families, and small business owners can benefit just as much from estate planning as millionaires.
If you’re curious about how estate planning can help you secure your family’s future, contact us to schedule a free consultation today.
Photo by Westwind Air Service on Unsplash used with permission under the Creative Commons license for commercial use 1/28/25.