With being a single parent, you need to have a proper plan in place of what will happen to your children if something were to happen to you. When children have two parents present, the estate planning process is easy because the children will be taken care of by their other parents. With single parents, the children may have to relocate and live with someone else. Providing for the children will be different as well because if money is not set aside for them, someone else may have to financially support the child. Continue reading to learn more about estate planning as a single mom.
The first question you need to ask yourself is who will raise your children if something were to happen to you before they are an adult. If the other parent is still living and fit to raise a child, you may change your answer. You need to choose a guardian that is fit to raise your children. Hopefully, you have a good community of people around you that already support you and your children. Your children's guardian is going to have to make choices including education, medical treatment, lifestyle, and place of residence. Have an honest conversation with your potential guardians before naming them to ensure they are prepared to take that role.
The second question is if you have enough life insurance to provide for your children after you pass. Life insurance is a good way to have the funds available to provide for your children after you're gone. You do not want to name your children as the beneficiaries. You will want to set up a Life Insurance Trust for your children to have the funds of the life insurance policy that will be a part of your estate. This allows your children's guardian to use the money to provide for your child.
The third question about your estate planning is if you remarry. If you have a blended family where you have a new spouse, stepchildren, and potentially more children, the plans for your estate may change. You must consider whether you will put all assets in your new spouse's name or keep it the way you have it. Using an estate planning attorney will help you make these difficult decisions.
Estate planning as a single mom can be extremely difficult but here at Genesis Financial Group, we are here to help. Any questions you have, we can answer. We can assist you in making the tough decision. Call us today to start your estate planning process.