Many young parents think about providing their children with the life they deserve. What they don’t plan for is something happening to them. If a child loses both parents, they can be placed into the foster care system and end up living a vastly different life than the parents had planned for them. Creating your estate plan with your children in mind is one of the only ways that you can minimize the chance of this happening.
When you have minor children at home or a child who has special needs, you should think about who you want to care for them when you’re gone. This person is named as the guardian in the estate plan. Be sure that you talk to this person so they know that they’re going to have this responsibility. You can also discuss any special wishes you have for your children.
Your estate plan can also provide for them financially. You can leave behind assets that can help to support them. It can include trusts that will pass down assets based on the terms you set for it. You can also use a payable on death designation on certain financial accounts, such as checking and savings, to provide for them.
As you’re thinking about these plans, remember that you can also give the guardian of your children power over their financial matters. Alternatively, you can choose to name a trustee over them. This could prevent misuse of the funds if there is any chance this might be a concern.
Ultimately, you have to set the estate plan up in a way that will benefit the children. Working closely with your attorney can help you to reach that goal.