"Do we need a Will, we have no assets"

The most common question I get from young couples (and single parents) when discussing estate planning is:  “Do we need a Will – we don’t own anything?”  My response is always the same:  “Do you have a minor child?”  If the answer is “yes,” then, “yes” you need a Will.  At this stage in life, estate planning has more to do with “life planning” than “estate planning.”

The reason couples with minor children and single parents need a Will, if for no other reason, is because your Will is where you have a chance to name your choice of who will be the guardian for your child if you die (or die simultaneously – for couples) while your child is a minor.  Although the Court is not bound by your choice, it will give your choice a high level of deference so long as your choice of guardian is reasonable and your choice is otherwise legal (for example, the surviving parent in cases of divorce will likely be appointed instead of the person you choose). 

Your Will is also where you can create a testamentary trust to name the person (the “trustee”) who will handle the assets your minor child inherits from you, however minimal they may be.  The choice of guardian and trustee can be the same person or a different person.  Sometimes it makes sense to name a person who lives in the same school district and/or has a child themselves of similar age to your child (perhaps even your child’s friend) as your choice of guardian.  But maybe that person isn’t the “best with money” or doesn’t share your philosophy regarding money as much as some other person you could choose.  In that case, you can nominate one person to serve as guardian and another to serve as the trustee.  More times than not, however, I typically recommend the same person be named both guardian and trustee to avoid an undue financial burden that could be placed upon the guardian if “issues” arise between the guardian and the trustee.  After all, my guess is you will agree with me that your child is worth more than any amount of money.

Equally important as having a Will if you have a minor child, is having a durable power of attorney for someone to make financial decisions for you, and a durable power of attorney for health care decisions (or patient advocate designation) for someone to make medical decisions for you in the event you are unable to do so yourself.  Although the topic of power of attorneys is outside the scope of this article, sufficient to say you should have both of these power of attorneys whether you are single, married, with children or not.  In short, if you are age 18 or more, you need these two power of attorneys.