While estate planning is important for all parents, it is especially important for single parents. This is because there isn’t a second parent to fall back on if something happens to you. You want to make sure that your children taken care of both physically and financially if you were unable to.
Single Parents and Guardianship: Choosing a Guardian for Your Child in Wheat Ridge
The most important decision to make is choosing who you want to raise your children if you are unable to do so. Now, if your children’s other parent is still around, he or she may have the legal rights to the kids, but it’s important to have someone that you named as a guardian as well. If you don’t have one appointed, then the court will appoint a guardian who will be tasked with choosing who will raise your kids.
Finances and Single Parents: Making Sure Your Children are Taken Care of Financially
Because a minor cannot inherit any property or assets, it’s important that you have a plan in place to make sure that your children will be financially set. If you do not have an estate plan in place, then your assets will likely be tied up in a probate case until the courts can decide how your estate will be divided and managed. Planning ahead can ensure that your kids will be taken care of. Usually, the best way to take care of that is to set up a trust. You will also choose a person to manage that trust until your kids are of age that they can manage it themselves. This way, you have a trusted person who will make sure that your children are taken care of financially. In setting up your trust, you can also name the trust as the beneficiary of your life insurance and retirement accounts. This way, your kids will have access to that financial benefit as well.