Key Questions That Single Parents Need to Ask About Their Estate Planning
Estate planning is even more important when you are a single parent because you have primary concerns about your minor children. The general estate planning concerns for minor children of a single parent is similar to the estate planning process for those families that have two parents.
There are several critical questions that you need to ask yourself to bring to the table when you have a meeting with your estate planning attorney to determine whether or not you have covered all of your bases. These include:
- Am I appropriately insured? With only one income to draw from, it is important to ensure that you can provide for your retirement as well as for the financial security of a child.
- What happens if I were to become incapacitated? You need to have documents such as a power of attorney that determines who is eligible to step in on your behalf in the event that you become unable to make decisions for yourself.
- Are my estate planning documents like my will up to date? You need to ensure that your estate plan is reviewed at least on an annual basis to ensure that your current circumstances are reflected.
- Have I established a trust for the children? Trust planning is one of the best ways to plan for the future financial security of your children. A professional individual can manage trust assets and determine the circumstances under which funds are distributed.
- Have I chosen a guardian? In the event that the other parent is unable to take custody of your children, if you were to pass away suddenly or to become incapacitated, your estate plan should outline a willing and able guardian to step in to take care of them.