Where do We Start Our Estate Planning?

My wife and I have been married for 10 years and have not done any estate planning. Where do we need to start? We have 2 kids and 3 animals.

This is a great question and one I wish more families would ask.

In my opinion, you should start with durable powers of attorney, healthcare powers of attorney, and a trust.

Let me explain.

I have to assume that your children are under 18.

If you just have a Will, then your estate would have to go through probate and your children’s money will be managed by their guardian, perhaps through the court.  When they turn 18, they get their share outright.  You don’t get to make the rules for the money.  You don’t get to decide how it is spent or who oversees it without a Trust.

The trust can provide for your pets.  In Arkansas, you can create a trust just for your pets.  You set aside money and name the person who will take care of them.  The money is there for that person to use.

Also, without a Trust, any life insurance proceeds could be held by the insurance company and paid out in a lump sum when a child turns 18.

You also need to nominate guardians for your children, and this would be done through another document.

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