By Sarah Stewart Legal Group
For married couples, many decisions regarding who manages assets after death and makes medical decisions for their spouse can be relatively easy. When a family involves a single parent, those questions can become more complicated.
Today we’ll discuss 5 concerns single parents should consider when making their estate plans.
(1) Who Will Take Care of the Kids?
Who would you want to take care of your minor children if you’re unable to? If you are a divorced parent, the default will be the other parent, if that parent is living. If that parent dies before you, or for another reason is not in the children’s lives, you will need to choose someone you trust to care for your children. If that person does not have the financial resources to take on an extra child or more, you may want to consider establishing a trust for the care of the children. These trusts can be funded with life insurance proceeds, or any other assets you have.
(2) Are You Insured?
As a single parent, your financial responsibilities are greater than married families. You carry the entire burden yourself. Be sure to look into life insurance and disability policies so that you and your children can be covered financially during any times of disability or death.
(3) What Happens if You’re Incapacitated?
All estate plans should include incapacity planning. If the children are adults, they can help make medical and financial decisions for their parent if they’re incapacitated. If they are not adults, you will need to find a family member or close friend who can help make medical and financial decisions for you when you are unable.
(4) Do You Have a Trust?
If you have young children, a trust is the only way to ensure they will not receive their money until you are ready for them to and to control the way those assets can be managed. If you have an ex still living and the children are minors, without a trust, the money will go directly to your ex to manage for the children as he or she sees fit. If that situation doesn’t sit well with you, you will need a trust for your children with a manager that you trust to handle their assets correctly.
(5) Have You Updated Your Estate Plan?
Estate plans should be reviewed regularly to update beneficiary designations and ensure the documents still meet your intentions. Transitional periods such as marriage, divorce, and when minors become adults are all very important times to review all plans and update them. Don’t wait. Take out your plan today and review it.
Single parents have a lot of responsibilities. It can be easy to forget about the details of planning for your children if you die or are unable to care for them. However, planning is even more important for single parent families, since they do not have a default person to rely on.
Reach out to professionals to help you refine your own estate plans.