Single parenting demands estate planning.
You are a parent.
You love your children.
You make sacrifices to set them up for success, protect them, and care for them.
It is a hard and thankless job at times.
Yours is harder than many.
You must constantly plan two steps ahead, whether for carpool or dinner.
You are a single parent.
According to a recent Kiplinger article titled “Estate Planning for Single Parents,” the most important planning a single parent should do is estate planning.
Who will rear your children?
Do you have an ex-spouse?
If yes, is this person responsible and capable of caring for your children?
If not, who would you like to rear your children to adulthood with your faith, values, and work ethic?
Selecting a guardian is a vital decision.
Whether you choose a parent or a sibling, discuss your decision with them in advance so they are aware of your reasons.
Once you have nailed down this fundamental decision, next you will need to make plans for the financial support of your children.
Minor children cannot inherit.
Consequently, a trust may be a wise alternative.
A trust can receive IRAs, property, and life insurance settlements on behalf of your children.
You will set up a trustee to manage the funds and can leave detailed instructions regarding how the trust is to be administered for your child.
You can also include instructions for family visits, vacations, and behavioral incentives (e.g., finish college, trade school, or join the military).
Creating and implementing a plan now with the help of an experienced estate planning attorney will ensure that your children are in good hands should you pass away.
And that is great peace of mind.
Reference: Kiplinger (May 20, 2019) “Estate Planning for Single Parents”