Single parents have a lot on their plates, but skipping over estate planning and tax planning is a bad idea. Many people overestimate the amount of time they’ll have to dedicate to the process, but investing some time to meet with a specialist and accomplish your planning is a valuable process.
You play a critical role in the life of your child or children, and while it’s hard to think about what life would look like if something happened to you, you must consider a range of factors like:
- Who would take care of the children?
- Do you have plans for your death as well as possible incapacitation?
- Who would be in charge of managing their food, education, and housing?
Although each situation is unique, there are several estate planning options that tend to align well with the needs of a single parent. These include:
- A will. Although it’s often the most basic for of estate planning for anyone, it’s critical to name who will be responsible for your estate. You may also use this to nominate a guardian to care for your children.
- A revocable living trust. Living trusts gives you the power over the assets inside while you are alive but empowers another individual if you become incapacitated or pass away. This is very beneficial because even an older teenager is not likely equipped to manage a big inheritance and a living trust can outline provisions to address these concerns. A side benefit of this approach is that it avoids probate, saving your heirs time and money.
- Power of attorney and health care directives. You need these regardless of your age or health condition. It’s simply a good idea to name someone who has the ability to make critical decisions on your behalf should something happen to you.
Talk to an estate planning specialist to uncover the estate planning tools you need to accomplish your goals. We’re here to help- send us a consultation request to info@lawesq.net.