Articles   Why Young Parents Should Consider Estate Planning by Kathryn L. Pasternak, Esq. Often younger couples put off thinking about their estate plan. They may do so for a variety of reasons: it’s not the most upbeat topic to ponder because one has to consider one’s own mortality; it doesn’t seem particularly pressing as the couple’s assets are not yet to a level where they are concerned about estate taxes and they are in great health, anyway. Unfortunately, however, many people do not realize that, if they die without having a valid will, their assets will be distributed according to the state statute for intestate distribution (distribution of assets where there is no will). Parents may not know that, if they both die without wills, the probate court will appoint a guardian of the estate for their assets, and those assets will be distributed to their children at age 18. If one parent dies without a will, the statute provides that $100,000.00 plus one-half of the remainder of the estate will go to the surviving spouse, and the other half will go to the children. Developing an estate plan doesn’t have to take that much time from a busy life, and it doesn’t even have to be that expensive an endeavor. More importantly, it can provide for the day-to-day security of a couple’s young children in the event that the improbable occurs and healthy young parents suddenly are no longer there to look out for their children. In a will, a parent has the opportunity to designate who will serve as guardian, executor and trustee and their successors, should the primary nominees be unable to serve. If parents die without having specified the individuals they want to assume these obligations, the decision will be left to the probate court. Family disputes may ensue and the individuals who are eventually designated to bear these responsibilities may not be the people the parents would have chosen. In considering who should serve in these capacities, it is necessary to first understand what guardians, executors and trustees are supposed to do. The three roles involve different functions and responsibilities, and a couple should think carefully about the personal characteristics of the various family members and friends they might consider for these roles. Guardians are responsible for the day-to-day care of the children. They may be called upon to make decisions relating to medical and educational issues, as well as the on-going guidance and nurturing of the child. Usually, young children left without parents will live with their guardians, and so parents should carefully consider the life-style and values of the potential guardian. Are they similar to their own? Would they be comfortable with their children growing up in that particular environment? Geography may also be a factor. Would the children have to move to another area, far from friends and classmates and grandparents? Would this be difficult for their children? Is the guardian young and healthy enough to meet the often rigorous demands of bringing up young children? The commitment is long-term. Conversely, the time commitment of an executor can be relatively brief, although it can be substantial for the six to eighteen months it takes for most estates to proceed through the probate process. It may be more burdensome for an executor who lives far from the home of the deceased, as an executor may be required to interact frequently with the probate court, the attorneys for the estate and local financial institutions, among others. In the early stages of the probate process, the executor will need to obtain information on the decedent’s assets; if there are numerous accounts, insurance policies and business interests that can be a very time-consuming endeavor. The executor will have to locate the decedent’s assets, transfer title to the estate and do whatever is necessary to safeguard and protect those assets. That may include insuring that the home is maintained, and in some cases, it may mean preparing to put the house on the market and being the primary contact for the negotiations and completion of the sale. An individual with good organizational skills and an ability to meet deadlines and deal with a number of financial and practical issues for a six to eighteen month period would be a good candidate. A trustee with financial experience is a plus, but lack of experience in that area can be compensated for by working with reputable advisors. A trustee is responsible for overseeing the financial assets of the deceased and assuring that they will be prudently invested and available for the children’s needs through the years ahead. A trustee’s role may last for years, and sometimes a trustee may have to make difficult decisions as to whether it is in the best interest of the child to make a monetary distribution at a particular time in that child’s life. A friend or family member who understands and would honor a parent’s philosophy might be the preferred nominee. However, unless that person has a good knowledge of financial matters, it is essential that he or she work closely with experienced professionals. Trusts for children can last until the children are twenty-one or thirty years old, or older, depending upon the wishes of the parents who set up the trust. Trustees may be called on to make decisions about funding for academic, professional or other pursuits, and a parent should choose the person whose decisions would best reflect their feelings about financial assistance to their children. Estate planning can provide an opportunity for a couple to review their assets and liabilities in an orderly way. It may encourage them to consider their goals and to examine their priorities. A meeting with an estate planning attorney may help young parents to review pertinent issues such as those related to life insurance. Their decisions can dramatically change their estate planning needs. Related documents which many couples request include those which designate health care agents and specify personal preferences regarding life support issues, should they become incapable of making those decisions for themselves. The process is really not that mysterious, and it doesn’t have to be particularly time-consuming. It begins with thinking about guardians, executors and trustees, and also includes a review of assets and liabilities. Often attorneys ask new clients to fill out a questionnaire before coming in for an initial meeting. The attorney will probably ask additional questions at the first meeting to understand how to best structure an estate plan that protects them and honors their philosophy and wishes. The clients will then have an opportunity to review draft documents and make changes. After the documents have been finalized, the clients will come in to the office to sign them. The process doesn’t have to be daunting, and it can provide peace of mind to parents with young children.   Kathryn L. Pasternak is a long time New Canaan resident and senior associate of the firm. Attorney Pasternak’s practices in the areas of trusts and estates, real estate and land use. Ms. Pasternak graduated from Sweet Briar College with a B.A. in Spanish, received her Juris Doctor from Pace University School of Law in 1997 where she was awarded the Julian H. Hyman Memorial Scholarship Award for Trust and Estates given by the Westchester Community Foundation. Ms. Pasternak also received her M.A. in Spanish from the University of Virginia Graduate School of Arts and Sciences.