There are several challenges of being a single parent. Some of the most common questions that single parents ask themselves are – what would happen to their children after them? What if they pass away suddenly or get incapacitated? Will their kids be able to get their lives back on track?
Single parents must seriously consider creating a good estate plan a necessity. Establishing a trust is one of the best ways to ensure that the child is cared for if the parent suddenly passes away or gets incapacitated and is unable to take care of the kid.
Here are some questions that single parents must ask themselves before creating a trust.
What Happens If I Decide to Marry Again?
When creating an estate plan, single parents must consult an estate planning attorney in Santa Rosa to understand how their decision to remarry will impact their financial situation. They must ask important questions such as whether they would have to provide for their new spouse and kids.
Do they have enough resources to take care of everyone? Does their new spouse have kids from a previous marriage? If yes, who would be responsible to take care of them? Answering these questions is necessary to avoid a clash of interests and confusion.
Do I Have Enough Insurance Cover?
Single parents do not have a backup income in the event they can no longer work. It is, therefore, important that they plan their retirement carefully and well in advance.
They must evaluate their and their children’s current and future needs, and analyze whether they have adequate insurance cover to provide for their needs. Because single parents do not have the cushion of a backup income to fall back on, they must seriously consider buying both life insurance and disability insurance.
Should I Establish a Trust?
Establishing trust is one of the most effective ways to ensure that their children are cared for if a single parent suddenly passes away or is no longer able to take care of them. The trust creator must be very careful when choosing trustees as they will be responsible for managing the trust assets.
The creator must also decide under what circumstances assets should be distributed among their kids. Establishing a trust must top the priority list of single parents, as without one, their assets can come under the control of a court-appointed administrator or their ex-spouse.
Should I Include a Living Will in My Estate Plan?
A living will specifies the creator’s healthcare preferences in case they become incapacitated. Every single parent must seriously consider designating an executor who can legally take decisions on their behalf, in case they are unable to do so.
Need expert legal advice? Look no further than Johnston Thomas Law. We are committed to helping our partners navigate the complex legal landscape. As a team of competent legal professionals, we have successfully represented several clients in different courts. To book an appointment, call us at 707-545-6542.