If you are a single parent, life for you right now probably couldn’t get any busier. You are likely being pulled between work, school activities, and home – and the inevitable emergencies that fill the lives of single parents everywhere.
Being a single parent is a huge responsibility, even if you do share time with a parenting partner, and especially so if you don’t. Regardless, as a single parent, your children’s lives are now largely in your hands. So what would happen to them if something happened to you? Who would take care of them? Who would pay for their housing and food? Who would pay for their education? These are questions you need to get answered, and the best way to do that is through estate planning.
Having an estate plan that covers the care of your children in case you should be in a severe accident, fall ill, or die welcomes peace of mind for the single parent knowing everything and everyone they love is taken care of. Here are the must-haves that can protect your children if something were to ever happen to you:
A Will lets you name the person responsible for your estate and belongings as well as who will inherit your assets. Most importantly this is the legal vehicle you use to name a guardian for your children, without a will, the state will decide their fate. The greatest risk you leave behind when ignoring this piece of your estate plan is that your children could be taken into the care of strangers at any time.
Revocable Living Trust
There are so many benefits of a Living Trust for single parents. First, a Trust enables you to still control your money and property while you’re able, but if you die or become incapacitated, it transitions that decision-making authority immediately to the person you have named as your trustee (obviously someone you can trust and count on to do what you would have wanted). If your children are still minors or even young adults their inheritance can be handled for them until the time comes when they are capable (and you decide that time). Plus, if you have a trust, your estate doesn’t have to go through probate, which can be costly and time-consuming. Without a Trust, you risk draining your hard-earned money on probate costs. This is not ideal if your children need to continue living in their homes and having their expenses paid.
Financial Power of Attorney
As a single parent, you are likely the only signatory on your mortgage, your bank accounts, and other financial instruments. What would happen if you became incapacitated and there was no one to pay the mortgage or the bills? That is why it is important to have a durable power of attorney in place. When choosing your power of attorney, it should be someone you trust managing your financial affairs, while also make legal decisions on your behalf if you are unable to do so.
Healthcare Power of Attorney
A healthcare power of attorney gives you the legal power to the person you choose to make your health care decisions in case you are not capable of doing so yourself. This is especially important if you are single or do not have immediate family members nearby.
Your life insurance policy, retirement accounts, and brokerage accounts all require beneficiary designations. Those you designate to receive the assets in these accounts will only receive them if you execute the proper beneficiary forms! And minor children should never be named as beneficiaries as they are not legally able to own assets. That’s why if you name minor children as beneficiaries on life insurance and retirement accounts, a probate court process would be triggered and a court would have to choose a financial guardian to watch over those funds for your kids. Talk with us today about strategies to leave these assets to your children without all that court intervention.
Children’s Protection Plan
The Children’s Protection Plan allows you to name short term guardians to be able to temporarily take custody of your kids until the long-term guardians in your Will can come forward to take them. This ensures that your kids would never have to be temporarily taken into the hands of strangers at children services if something were to happen to you and the long-term guardians were not immediately available to help.
One of the main goals of our law practice is to help families like yours plan for the protection of yourself and your family through thoughtful estate planning. Schedule online today for your free Family Prosperity Planning Session for us to review how to protect what matters most. During this time together, we can identify the best strategies for you and your family.
This article is a service of estate planning attorney Elliott Feldman and the Elliott Feldman Law Group. We do not just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Family Prosperity Planning Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Family Prosperity Planning Session and mention this article to find out how to get this $750 planning session at no charge.