All adults should have an estate plan, so their loved ones know exactly what to do when something happens. When minor children are involved, it’s even more important to have everything in order.
There are some special considerations that you have to think about when you’re creating an estate plan. These points might be a good starting point for you.
Guardianship designations are critical
If both parents pass away, the guardianship designation enables you to decide who will raise your children. The person you choose should be able to handle the demands of your children. Ideally, you’ll talk to them to let them know anything specific you feel they need to know. It’s also a chance to determine if they can take on the responsibilities.
Payable-on-death accounts provide immediate support
Your financial accounts can provide immediate financial support for your children. When you start an account, you can decide who to name as the payable-on-death designee. Once the death certificate is issued, that individual can access the funds in the accounts.
Trusts can offer long-term support
You may consider creating and funding trusts to provide long-term support for your children. There are specific points that you need to plan for when your children are minors, so seeking assistance from someone who understands trusts is essential.
A comprehensive estate plan can give the creator peace of mind. It also minimizes the stress on those who are dealing with their loved one’s death. Working with someone who’s familiar with estate planning for parents can make it a bit easier to get the estate plan in order.