Estate planning is a serious matter for everyone, but it’s especially important for single parents who want to protect their children. It’s never easy to think about the time when you may no longer be here, but it’s also true that you can’t afford to feel uncomfortable about the subject if you want to keep taking care of your kids even when you’re not physically present. That said, it would be wise to seek legal advice on the matter, protect your assets in time, and secure your children’s future in advance.
A Will and a Trust Are Essential Documents
A will is without a doubt one of the crucial documents that single parents can utilize in order to protect their children. After all, having an established will means that the parents can also name a guardian for their children in case of their sudden passing as well as relay their wishes in regard to the assets and estate. Aside from the will, a trust is another essential part of this preparation as it will speed up the probate court proceedings, delegate the assets accordingly, and enable the trustee to hold onto the child’s assets until they become adults who can manage their own assets and finances. It’s never a good idea to have all of the assets distributed right after the parent passes away if the children are still minors.
Life Insurance Is a Good Idea
Aside from the will and trust, many single parents also consider investing in life insurance in order to further support their children after their passing financially. If you go by the estate planning and asset protection in Arizona, you can also talk to the legal representatives in order to lessen the tax burden and include the life insurance proceeds in the entire plan you create for your children after your death. Of course, there may be some differences across the states, which is precisely why it’s so important to put your trust in reputable and experienced legal institutions. Never try to do everything on your own without the help of professional guidance as things can only get more complicated.
Planning in the Event of Incapacitation
No one knows what the future might bring. As such, it’s also important that single parents plan in the event of becoming incapacitated. That way, they can name a person who will take care of their children before they become adults, make financial decisions in their stead, discuss the options for external care for the parents, and so on. There are several different options to consider in this case but it’s even possible to establish a process of paying for the child’s bills and expenses directly from the parent’s account even if the parent in question may be incapacitated and the child still a minor. Therefore, it’s crucial to address all possible scenarios when you’re a single parent as estate planning can effectively deal with all sorts of financial issues and different situations.
Plan for Beneficiary Designations
Not all assets have to go through probate court proceedings. Actually, there are several different aspects such as life insurance, pension, and so on, that can be passed directly to a beneficiary. However, it’s also a fact that children cannot inherit these assets until they’re of legal age, which is precisely why single parents have to name a beneficiary who will hold onto these assets for them and protect them well. As mentioned, utilizing various trusts is always a good solution, but it’s also crucial to take the time to find the best person who will act as a beneficiary until the children are of legal age. Make sure to put your trust in someone who’s close enough to you and your children and whom you can be sure will take care of your kids and their interests properly.
Business Succession Planning
In case the single parent is a business owner, it’s also necessary to plan for the future of the said business after the parent’s passing. In case you decide to go with the business succession, it’s possible to have your business operate and provide income for your kids until they’re of legal age to take over the business. However, in some cases, it might be better for the kids’ future to simply proceed with business closing and liquidation, so make sure to assess the circumstances carefully before making the decision.
All legal matters can quickly become overwhelming, let alone estate planning for single parents. This is precisely why you should make the most out of all the help you can get. With the right legal agency to support both you and your children, you’ll be able to deal with this protection plan quickly and efficiently and enjoy your life without worries knowing that your children will be taken care of.