Estate Planning Tips for Single Parents

No one wants to think about what happens when we’re gone, but as a single parent, you know you’re your kids’ entire world. Putting a plan in place for what happens if you die or become incapacitated can protect your children and avoid costly probate fees.

Structure Your Estate to Help Your Kids

• Set up trusts for your minor children to ensure their money is protected until they are adults.

• Select a trustee to oversee your children’s inheritance until they can manage it themselves.

• Designate specific circumstances under which the trust funds can be used for your kids' expenses.

• This allows you, not the court system, to manage your estate.

Designate Guardians

• Use your last will and testament to designate who you want to raise your kids if you pass away before they’re adults.

• The last surviving parent often has the right to legally appoint a guardian for minor children.

• Without this designation, a judge will decide who will raise your children.

• A formal plan ensures your wishes are followed.

Designate Who Can Make Financial and Health Care Decisions

• Designate who can make financial and health care decisions if you cannot make them for yourself.

• Appoint another adult friend or relative as your agent on your power of attorney legal documents.

• They can make medical decisions for you in the event of incapacitation.

• Update your plan to include one of your children as they become adults.

Sooner Is Better than Later

Most estate planning discussions involve providing for the children. For single parents, the stakes can be higher. When a single parent with young children passes away, the children are often forced to live with a relative or ex-spouse, leaving behind familiar surroundings. You are irreplaceable, and while this is a tough conversation to have with yourself, the peace of mind by knowing your kids are protected if the worst happens is priceless.

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