Why New Parents Need Wills

Why do new parents need wills?

For one thing, with a child, without a trust within the will, if either parent dies and leaves property to a child, a guardian will have to file a report with the court every year until the child reaches 18.

Second, the new parents need to communicate through their estate planning how they want their property distributed.

Third, if both parents die, their wills can state whom they want to raise their children.

Fourth, if the parents want their estate to be confidential, then they need a revocable living trust.

Finally, if together their joint estates are valued at $1 million total, then they either need a marital deduction clause or a life insurance trust. That is because as of Jan. 1, 2011, all estates > $1 mil. are subject to the estate tax. The cost and time to file reports every year is high, and estate taxes are very high – as high as 55 percent.

Hiller Law is a full service family and estate planning firm, and we want to be sure all couples are given the best opportunity to succeed financially in their marriage.