As a parent of a minor child, you have a lot of responsibilities. One of the responsibilities that you might not have thought about is making a plan for what will happen with your children if you pass away. Even though this isn’t a pleasant thought, you might be able to rest a bit easier at night if you know you have made this plan.
You can’t ignore creating an estate plan just because you think that you have plenty of time left to get the plan together. The reality is that you don’t know when something will happen to you. Here are some points to remember when you are creating an estate plan to care for your minor children if something happens to you:
Take the guesswork out of your final arrangements
Make your funeral plans now so that your loved ones don’t have to make those decisions for you. This will let everyone use their energy to help your children during this very difficult time. If possible, plan for the monetary hit that comes with making final arrangements. You can write out a detailed plan about what you want to happen and make sure that you have your burial plots taken care of.
Thinking a bit before the final arrangements might also be a good idea. You can set up powers of attorney designations to give someone authority to make medical decisions and financial decisions if you can’t make those yourself. Make sure this person will respect your wishes.
Provide them with all the support you can
Setting up trusts and using payable on death designations will support your children. It is imperative that you think both in terms of short-term and long-term financial ramifications. Since your children are minors, you need to set things up in a way that won’t be impacted by their age. This can be a challenge, but it is possible.
Decide who will raise them
Your estate plan needs to have a guardianship designation for each child. This can be the same person or each child can have a different guardian. The person you choose as your child’s guardian should be someone you trust to raise your children appropriately. The guardian needs to know that he or she is being entrusted with this role and should be ready to handle the duties that come with raising a child.