Why Single Parents Need to Take Estate Planning Seriously

When a mother of father passes on, it may be possible for the other parent to pick up the slack when it comes to caring for a child. However, if a child has no other parent, he or she could be placed in a foster home or any other number of environments. By creating an estate plan, a parent can help support a son or daughter even after that parent dies.

Include a Will and Trust

A will can provide clear instructions as to how a child should be cared for. For instance, it could state that an aunt or a grandfather will ideally have custody or significant visitation rights. A trust could spell out how money from an IRA or life insurance policy should be used to support the child. A trust is ideal because it puts money and other assets under the control of a trusted figure as opposed to someone appointed by the court.

Don’t Leave Assets to Minors Directly

It is never a good idea to leave an asset directly to a child. This is because someone will need to manage it on that child’s behalf until he or she reaches the age of majority. Whoever oversees the asset will need to spend time and money accounting for how it is used and issuing other reports to a judge. Any funds spent on such tasks will usually come from the parent’s estate.

An Attorney May Help With Estate Planning

Working with an estate planning attorney in Las Vegas could make it easier to create or review plan documents. A financial professional may also be able to ensure that a plan meets the needs of the parent and child both now and into the future.