As we get older, estate planning becomes an even more important necessity. Without a solid plan in place to distribute your assets, your loved ones may not have access to your property upon your death. Legendary musician Billy Joel, at the age of 68, recently announced that he is expecting his second child with his wife. With a baby on the way, plus his two other children, ages 31 and 2, Joel has certain things to consider due to being an older parent to young kids.
It is important to consider estate planning, even if you are not sure what your family will look like in a few years. This is especially true for people like Joel, who have a significant number of assets. Joel may consider establishing a quiet trust to determine which of his beneficiaries get what, without informing them or making that information public. Joel, and other people with multiple children and past spouses, should make sure to account for all former and current family members. Even if you choose not to give any assets to certain people, that should be mentioned in your documents.
An older parent with young children may have some challenges when it comes to estate planning. For many parents, the biggest issue may be making sure a younger spouse and soon-to-be baby are taken care of. An older parent may pass away sooner, leaving their spouse to support a young child on their own for many years. Many parents spend close to $500,000 on the child needs, from birth to their mid-20s.
When coming up with an estate plan, make sure to consider these costs and talk to your attorney about your concerns. Your plan can also be made flexible, if there is a sudden illness in the family or another unexpected change in circumstances. Everyone, especially older parents with young kids, needs to be prepared for the future to ensure their loved ones are cared for upon their death.
Source: CNBC, “Billy Joel, 68, will soon be a new dad. What older parents need to know,” Lorie Konish, Oct. 19, 2017