Many single parents are the sole providers and caregivers to their children. It is important to approach estate planning for single parents with this in mind. In a strong estate plan, the tools used will reflect the unique circumstances of the individual. Single parents, here are some things to consider when engaging in estate planning.
Estate Planning Considerations for Single Parents
One of the big things that single parents should consider when estate planning is the possibility of getting remarried. Of course, after a remarriage, a person should always review their estate plan to make sure it accurately reflects their current situation.
For instance, you will need to consider whether you want to provide for your new spouse as well as your children in your estate plan. If your new spouse has children from a previous marriage, there are certain estate planning protections you may want to put in place to make sure everyone receives the proper inheritance. There are also certain precautions you should consider taking in protecting the inheritance of your own kids, should that be your wish.
Another important estate planning consideration for everyone, but maybe especially for single parents that are the sole providers for their families, is proper insurance coverage. This includes making sure your life insurance policies accurately reflect the needs of your families. It can also include making sure you have proper disability coverage. If you are the sole provider and you become disabled, disability insurance benefits can provide critical financial support for your family.
Trusts For Children
Speaking of providing financial support for your family under different circumstances, you may want to consider establishing a trust for your children. A trust can be a great way to provide continued financial support for your children. The trust is managed by a trustee according to the terms set forth in the trust. You have wide discretion regarding how the trust should be managed as well as how and when distributions should be made to the beneficiaries.
When you are a single parent and the other parent is not in the picture, it also becomes even more critical that you name a guardian for your children in your estate plan. Should you pass away without naming a guardian, it will be left to the courts to decide who should be tasked with caring for your children. By including a guardian selection in your estate planning documents, you are empowered to make this critical decision for yourself.
You get the opportunity to reflect on who would best serve in this role and you get the chance to discuss this with your potential guardian selections. Knowing that you have personally selected the person who will care for your children should you be unable can bring a great amount of peace of mind.
Contact an Estate Planning Attorney
Single parents, we know how much you do for you and your family. We want to protect you and your legacy with a strong, comprehensive estate plan. The team at Monk Law is here to help. Contact Monk Law today.