Being parents has always been a tough job. Taking care of your children and making sure that they are safe, has always been the primary cause of concern for all the parents. The same is the case in estate planning as well. For those who have children, they need to make sure that their estate plan primarily includes the financial stability of their children, especially when they are minors. Thus, this article is here to help such parents who need to come up with the best estate plan for their children’s safe future.
Some Tips for Estate Planning for Parents
There are some very important points that you must consider while taking care of estate planning if you have offspring of your own. Here are some tips which are going to help you in this respect.
Tip 1: Leaving Assets Right to Children
Giving all the rights of the assets to the children whether they are minor or adults is not a wise choice. You need to be careful while making such decisions. Because after all, they are young. And with all that money it will be difficult for them to manage. They might just spend all of the money within a few years. So, you must make this decision very careful with lots of consideration.
One thing you can do in this respect is that you can leave the assets to a guardian, who will take care of that until your children reaches a certain age. This way you can safeguard your money for the long term and in the meantime, the guardian will be able to train your children about handling money and all the other assets.
Normally people would consider the guardian as their spouse. Just in case you do not have that option, you can choose a close relative who can be trusted. Because at the end of the day you do not want all of your money to go in the hands of the wrong people. They might take advantage of it. So, go slow and think wisely before making such decisions.
Tip 2: Write A Will
Writing a will is so necessary if you have children. As mentioned above if you cannot trust your children fully with the assets, then you need to have a guardian to take care of them. You can appoint this guardian through the will. You need to name the person in the will and give him or her all the rights of your children while you are around.
This step is very necessary for the parent while attempting estate planning because if the name of the guardian is not mentioned in the will then the decision will go to the court. The court will get to choose the guardian for your minor children and this choice might not match with your preferences. To avoid this situation, writing a proper will with proper directions appointing the guardian is very essential.
Tip 3: You Must Have A Life Insurance
Life insurance is more of a financial choice than a legal one. But it is one of the smartest moves you need to make as a parent. Life insurance basically guarantees your family a certain amount of money on your untimely death.
This is to keep sure that if one of the parents dies suddenly then the other parent would get a good amount of money to stabilize the family again. This is a very wise decision for people who have children. If something happens to one of the parents then the other parent will be able to take care of the children with the insurance money.
Tip 4: Designation of Beneficiaries
Beneficiaries are those people who will have the right to all your saving accounts after your death. So, if you have children, try to make your spouse or your children as the beneficiaries of accounts so that when you are no more around them, they can still have the required financial stability. If you fail to put the name of beneficiaries to your accounts then there might be a contest among family members, regarding the money and this will only lead to a mess.
Responsibility is the main key of parenthood and the only way you can fulfill your responsibilities towards your children, after your death, is through estate planning. So, make sure you make the right choices while making the plan. Speak with an experienced estate planning lawyer to learn more about how estate planning can best benefit you and your family.