Estate planning for busy parents
As a parent, spare time is for sleeping. But as you lie down, the lists start running through your head of “should do this” and “need to do that”. Every so often, the thought of a Last Will and Testament comes to mind. Specifically for the purpose of naming a guardian for your minor children. It is easy to brush off the task because getting a Will requires a self-imposed deadline. Here are a few things to get your estate plan in order and get your estate planning status to “I did do that!”
Schedule your Will in a Day®
I created the Will in a Day® program for the busy parent. The only choice to make is to book either (1) a 60-minute virtual meeting and a separate 10-minute in-person signing meeting; or (2) a 90-minute in-person meeting which includes the signing. You can go to the scheduling page now and book your time.
Who do I appoint as a guardian in my Will?
A guardian is a person who will stand in your shoes as the parent. Appointing a guardian is something you have already had on your mind, but how do you narrow it down?
Appoint a person who can act as a guardian in the next 5 years; you can always amend your Will if circumstances change. This comes up when considering whether a grandparent should be appointed.
Appoint one person, not a married couple. Co-guardians have to agree on all decisions relating to the child including education, healthcare, and religion. The spouse can support the guardian, but it is much easier to have one final decision maker.
Appoint your preferred person. It doesn’t have to be a relative. They don’t have to live in Iowa.
A few closing comments on appointing a guardian for your child.
By law, the person you appoint in your Will is given preference by the Court.
You do not need to get permission from the person you appoint; they have the right to decline the appointment if the circumstances occur where a guardian is needed.
You do not need to disclose to anyone who you have appointed as a guardian; your Will is a private document.
Here are a few additional FAQs on appointing a guardian.
Create a testamentary trust
A testamentary trust is an inexpensive way to keep your child(ren) from blowing through their inheritance. It authorizes the trustee to manage and distribute the assets of the trust, on behalf of the child(ren), for the purposes set out in the trust. The testamentary trust lists the purposes for the trustee to distribute funds, such as health care, education, and cost-of-living expenses.
If you choose the Will in a Day® program and have children under the age of 18, your Will automatically includes a testamentary trust. Assets held in a trust are not accessible by the beneficiary. A testamentary trust is written in a Will and is only effective when the conditions of your Will are satisfied.
One of the conditions is that you and your spouse have passed away, and another is that the child has not reached an age where you are comfortable with them receiving their full inheritance. Parents often use age twenty-five (25) as the time when the child should have full control of their inheritance.
A testamentary trust is an inexpensive way to extend the life of the assets you leave for your children. It appoints a trustee who manages and distributes the funds on behalf of your designated beneficiaries. And, in the event you are not married to the other parent, it can keep the assets from being controlled by the surviving non-marital parent.
Funding a testamentary trust
A testamentary trust is created through your Last Will and Testament and is only effective upon the death of the testator (the person who created the Will) and if other conditions set out in the testamentary trust have been satisfied. Because the testamentary trust does not exist until these events occur, it cannot be funded during the testator’s life.
Funding a testamentary trust occurs using the assets of the deceased testator. Once you have your Last Will and Testament, it is important that to update the asset beneficiaries to list the testamentary trust, or the trustee as the trustee (e.g. Jane Doe, Trustee). For example, your life insurance policy could name your spouse as the primary beneficiary and the testamentary trust of the insured person as the alternate beneficiary.
The asset transfer worksheet that you receive as part of a Will in a Day® package instructs you on how to update your assets to name the testamentary trust.
Life insurance
I am going to take a quick detour from legal talk to put in a plug about life insurance. I always thought about life insurance as a gift of inheritance to a loved one. That is one reason, but the more practical reason is this - to replace income. Life insurance to benefit your family will allow them to stay in the house and help prevent a huge disruption in their way of life.
Life insurance through your employer is not enough. It typically covers a year of your salary. Math will bring this point home. Multiply your yearly income by the number of years until you turn 64. That is what your spouse stands to lose if you do not have life insurance beyond coverage from your employer.
Parents and Real Estate
In Iowa, if there is no surviving owner of the deed for real estate, then probate is required.
Side note: If you are married and you and your spouse are not both on the deed to the house, then your spouse will have to go through the court-supervised probate process to have the house transferred into their name. This situation comes up when one person owns the home before marriage and doesn’t update the deed to the house after marriage.
If there is no surviving owner on the deed, then the real estate transfers through your Last Will and Testament and requires court supervision. If you have a testamentary trust in your Will then the transfer or sale of the house should be directed to the testamentary trust. If you don’t have a Will, there is no surviving owner on the deed, and a child is a minor then the administrator of the estate will have to sell the house and place the proceeds in a court-supervised conservatorship. A conservatorship for a minor child lasts until they attain the age of eighteen (18). A conservatorship is expensive because it requires an annual reporting to the court each year and will require an attorney to help open the conservatorship with the court. It also allows the child to receive their inheritance at age 18.
Busy parents get so much relief with the Will in a Day®
Here is what parents are saying after their Will in a Day® experience.
Cindy Z. says “Getting all our legal documents completed to relieve our heirs of much stress was surprisingly easy with Hope. She was patient with all of our questions and answered every single one completely. We never felt pressed for time. We brought all our documents home from our meeting with her. So happy we chose Hope to help us! Thank you so much for sharing your expertise.”
Clint D. says “Super easy to get a will in no time. Hope made it easy and lighthearted. The price was more than reasonable. Thank you!”
Cathy E. says “So happy Hope was recommended to me. This is a fast, easy and painless way to get your Will created. Hope sent me a prep document, we had a zoom call to pound out questions and details, she'll send me a draft for review, then I'll sign the final document next week.”
