Many people think they only need to engage in estate planning if they are older or have significant assets. Estate planning, however, is also important for young people and young families even if they have minimal assets. This not only ensures proper distribution of their assets but will safeguard their family’s financial future and implements practical safety nets in the event of an emergency.
Directing & Protecting Wealth
If you die without a Will or Trust, your assets will go through intestate probate—a public, court-supervised, lengthy and potentially expensive process that directs assets to those individuals determined by State statute. If you have a blended family, this process will exclude an unmarried partner or stepchildren from inheriting from you. A Will allows you to intentionally direct assets to individuals of your choice, in the proportions you desire. Further, assets held in a revocable trust avoid having to go through the court-supervised probate process altogether, an advantage for those wanting to protect their children’s privacy in the event of a death and a potential cost-savings for estates without significant assets.
For young families with minor children, bequeathing assets to children in trusts can also be an invaluable tool to ensure a court-supervised guardianship is not necessary and protect their children’s inheritance from creditors. Additionally, it allows you to choose who will manage your families’ assets, whereas in a guardianship, a judge who never met you decides who will manage your assets for your family.
Life insurance is also an important estate planning consideration for young people, as it can be an efficient way to ensure a family remains financially secure if the primary breadwinner passes away. For families with only one working spouse, or a dual-income household with disparate incomes, life insurance can be a practical and cost-efficient tool to ensure future stability for your children. Working with an estate planning attorney to verify that the beneficiary designations on the policy align with your broader estate plan is critical to achieving that goal.
Decision Making & Minor Guardianship
Another major element of estate planning is ensuring the right individuals can make decisions for you and your family if you are unable to do so. For example, when an individual turns eighteen, their parents lose the ability to automatically make legal, financial, or healthcare decisions for them in their incapacity or absence. And when an individual gets married, their spouse does not automatically inherit that decision-making ability. Without the proper documents in place, young people’s spouses or parents can face significant challenges to assisting their loved one in an emergency.
Another important estate planning consideration for young people is a plan for the care of their minor children. No one wants to consider another person raising their children. However, notating your wishes for your child’s caregiver in your Will and executing a Pre-Need Guardianship Designation can ensure that the people you trust most will have responsibility for your children in the worst-case scenario.
Estate planning is for more than just the elderly and the wealthy. Practical planning now with an experienced estate planning attorney can give young people and young families security knowing they have appropriate contingencies in place for unexpected circumstances.
As a trusted partner in your financial future, FineMark can help you navigate and understand the estate planning process with your attorney to ensure a plan that aligns with your goals and assets.¹ If you would like to discuss this further, please contact your FineMark private wealth advisor.
¹FineMark does not prepare legal documents or give legal advice. For preparation of legal documents and legal advice regarding estate planning, please consult an attorney.
Estate Planning for Young Families
By Amelia K. Green
AVP, Private Wealth Advisor, Trust
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2025 First Review and Commentary
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