As a parent, you’ve probable spent countless hours trying to plan for your children. You may think that you have everything covered, but you might have missed one important point – creating your estate plan. You may not like thinking about your children growing up without you, but taking the time to make plans for that possibility now could save them from even more difficulties than what they’ll experience if they do lose you.
One of the most important things to remember about the estate plan is that it won’t go into effect unless both of the child’s parents pass away. If you pass away but their other parent is still living, that parent will be the one who raises the children as long as they’re willing and able.
Creating an estate plan enables you to outline specific things for your children. One of these is naming the person who’ll raise them. This person is named as the guardian in your estate plan. You need to name one for each child you have, but you can pick a different person for each child if needed.
You can also set up the financial plan for your children through the use of the will, trusts, and payable on death beneficiary designations. Many financial accounts have that designation, so be sure you name someone who will use the funds to care for your kids. The trusts can outline specific conditions for getting the proceeds. And, your will can be used to transfer anything that isn’t covered by the other components.
Having a comprehensive estate plan is important for your children. Remember that things can change periodically, so you should review the plan often to ensure that everything is still set how you want it.