Becoming a parent is one of the most common reasons that people create estate plans. They want to ensure their children have protection, even if something eventually happens to them. Making a concerted effort to prioritize the children’s potential future needs can provide parents with the peace of mind that comes from knowing their children have support even in the worst-case scenario.
What estate planning moves are typically necessary for parents with minor children?
Selecting the right guardian
After children lose their parents, they may end up in foster care. Other times, family members may fight over who cares for the surviving children.
Parents can eliminate the risk of foster placement and family conflict by selecting a guardian to assume their responsibilities in the event of their passing. The best estate plans have a primary guardian candidate and an alternate in case the person initially selected is unable or unwilling to assume the responsibility when the time comes.
Preserving inherited assets
Minor children are often the main beneficiaries of their parents’ estate plans. However, they may not be able to directly own and manage their inherited resources until they are legal adults.
Creating a trust can be helpful in cases where parents have life insurance policies, real estate and other assets they want their children to inherit. A trust can preserve those resources until children reach adulthood and can minimize the risk of a guardian or surviving parent diminishing what the children inherit.
The support of an experienced estate planning attorney can help parents craft documents that adequately protect their children. Centering the children’s needs during document creation can help parents protect their children, regardless of what unexpected occurrences they may eventually experience.