Estate Planning "Must-Haves" for Single Parents
If you're 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 share time with a parenting partner, and especially 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.
“Being a single parent is a huge responsibility, even if you share time with a parenting partner, and especially if you don’t."
Having an estate plan that covers the care of your children in case you are in a severe accident, fall ill, or die, provides peace of mind for a 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 immediately transitions that decision-making authority 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 a costly and time-consuming process. 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.
Durable 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's important to have a durable power of attorney in place. When choosing your power of attorney, it should be someone you trust to manage your financial affairs, while also making legal decisions on your behalf if you are unable to do so.
Advance Medical Directive
An advance medical directive gives legal power to the person you choose to make your health care decisions, in case you are incapable of doing so yourself. This is especially important if you are not married 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. They cannot pass to your heirs via a will or trust. And minor children should never be named as beneficiaries, as they are not legally able to own assets. Talk with Blyss Cruz today, your Family Business Lawyer®, about strategies to leave these assets to your children without court intervention.
Kids Protection Planning Kit®
Developed by a nationally recognized attorney who is a single mom herself, the Kids Protection Planning Kit® provides single parents with the legal planning tools they need to make sure there is never a question about who will take care of their kids if they are in an accident. The kit includes legal documents to name short- and long-term guardians, instructions for those guardians, medical powers of attorney for minor children, and more.
You can name your guardians right now with my Kids Protection Plan® Tool by clicking here. It only takes minutes and it’s absolutely free.
One of the main goals of Cruz Law is to help families like yours plan for the protection of yourself and your family through thoughtful estate planning. Call Cruz Law at (907) 313-9796 or schedule online today to schedule your free Family Wealth Planning Session so Blyss can review how to protect what matters most to you. During your session, together you and Blyss can identify the best strategies for you and your family. Click here to schedule your Family Wealth Planning Session online.
This article is a service of Blyss Cruz, Family Business Lawyer®. 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 Wealth 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 Wealth Planning Session and mention this article to find out how to get this $750 session at no charge.