Some people establish estate plans to protect their resources as they age. For others, the main incentive is a desire to protect their closest loved ones. People who may have previously avoided estate planning may start thinking about the distant future and unpredictable events after they become parents. It is normal for parents to worry about how their children might be vulnerable should anything happen to them.
Developing or substantially revising an estate plan is one way for parents to ensure their children have support when they can no longer rely on their parents. There are a few key considerations that parents need to address to ensure that their estate plans adequately protect their children.
Selecting an appropriate guardian
The worst-case scenario when a tragedy occurs is that a child might lose both of their parents at once. In such cases, they are at risk of becoming wards of the state or ending up in foster care. Parents can help prevent unstable and potentially traumatic experiences for their children by selecting guardians in advance.
Choosing the right people to take over childcare responsibilities is critical. Factors including an individual’s proximity, their health and their willingness to step up can influence the right candidate to nominate. Ideally, parents select a primary guardian but may also include an alternate candidate in case the first party isn’t available for some reason.
Preserving resources for the children
Some parents assume that their children should inherit their property automatically if they die. While children do have protection under intestate succession laws, it is often beneficial for parents to establish testamentary instruments anyway.
In fact, those hoping to provide continued support for minor children may want to consider establishing trusts rather than relying on basic wills. That way, it is possible to preserve some of the property for when the children become adults. Otherwise, their surviving parent or guardian could potentially use the entirety of their inheritance before they reach adulthood.
Parents thinking about their children’s futures may need assistance establishing appropriate estate plans, and that’s okay. Creating and revising documents can help ensure that children have appropriate support if they lose their parents.
