Michigan Estate Planning for New Parents

Key Estate Planning Considerations for Michigan Parents

Estate Planning for Parenthood is about making thoughtful and proactive decisions to protect your loved ones, whether you are expecting your first child or already have a minor child or children. Without the appropriate documents in place, your family could face challenging times in an already emotional situation. As a parent in Michigan, perhaps one of the most important estate planning steps you can take is to designate a guardian for your child if both parents pass away or are incapacitated.

Considerations for Designating a Guardian for Your Child.

Of course, the initial step is to consider whether the person you choose for a guardian shares your values and has the ability to take on important parental responsibilities, including managing the child's personal care, authorizing necessary medical and educational decisions and protecting the child's financial support for day-to-day expenses and long-term needs through a conservator. Other considerations include how your child would fit in and interact with the family of the person selected and what the child’s lifestyle would be like.

Discuss Your Decision with the Person You Have Chosen.

After deciding on a person to be a designated guardian, the next step is to discuss your choice with the person you have selected and determine if they will accept the guardianship for your child should the situation arise or have any concerns about being a guardian. It is also important to consider designating an alternate or successor guardian in case your first choice is unable to take on the guardianship responsibilities for any reason.

Typically, designating a guardian for a child along with other children you may have in the future is accomplished in a Will, however it can also be carried out with a stand along document that complies with the legal requirements for a Will. It should be noted that court approval is still required for a person to be legally appointed as a guardian however the probate court will have your Will as official documentation of your intent as to who should be appointed as the guardian for your children.

Consider a Living Trust.

Another important consideration for parenthood is whether to have a Living Trust included in your estate plan. A Living Trust is a flexible estate planning document that includes the appointment of a responsible and trusted person to step in when the parents are deceased to manage and distribute assets for the benefit of the children. For example, a Living Trust can include specific instructions to a successor trustee about how trust property is to be managed and distributed for a child’s health care, education, living arrangements and general support when the parents are gone. Instructions can also include instructions for distribution when a child reaches a certain age. A Living Trust also allows parents to retain control over trust assets while they are alive and to make amendments to the Trust if circumstances change.

Another advantage of a Living Trust is that it avoids costly and time-consuming probate administration which the public has access to. A Living Trust can also be named as a designated beneficiary on your bank and financial accounts so that the assets pass on to the Trust at death and are distributed accordingly. This avoids problems with designating minor children as beneficiaries on the accounts. Learn more about structuring trusts for families in our blog: Joint Revocable Living Trusts for Parents with Minor Children.

Additional Estate Planning Documents to Consider for Parenthood.

• Financial Durable Power of Attorney.
• Patient Advocate Designation and Durable Power of Attorney for Health Care.
• Beneficiary Designations on Financial Accounts.

Work With an Experienced Estate Planning Attorney.

An estate plan helps to ensure that your intentions are honored and your family is protected. Consult with an experienced Michigan estate planning attorney. At Ager Law Office, Bill Ager has helped parents young and old with all aspects of estate planning for their children. From his Ann Arbor office Bill serves clients throughout Washtenaw County. To schedule a free no obligation consultation, call Bill directly at (734) 649-0784, send an email to bill@agerlawoffice.com or submit the online contact form on this page.