Estate Planning Strategies for Single Parents
As a single parent, it is important to have an effective estate plan in place in order to ensure that your children are provided for if something were to happen to you. Estate planning can be complex, but it doesn’t have to be overwhelming. This blog provides essential advice and tips for single parents who want to create a secure financial future for their children. From investigating life insurance policies to working with an experienced estate planning attorney, this blog will provide all the necessary information you need to develop a sound plan for your family’s future.
Questions? Ready to get started? Learn more about Milwaukee estate planning with Margerie Law.
Assess Your Assets and Liabilities
When it comes to estate planning for single parents, one of the most important steps is to assess your assets and liabilities. This will help you understand your current financial situation and identify any additional considerations needed when creating an estate plan.
Assets include any property that you own, such as real estate, bank accounts, and investments. Liabilities refer to any debts that you owe, including mortgages, car loans, credit cards, and student loans. Knowing these figures can help inform decisions about how much money should be kept in cash reserves and what investments should be made for future needs.
It’s also wise to consider any potential inheritance or gifts that may come your way in the future and factor them into your overall estate planning strategy. By having a full understanding of all sources of income as well as debt obligations, you can make sure that all essential pieces of your estate plan are addressed for the benefit of yourself and your family.
Draft a Will or Revise an Existing One
A cornerstone component of estate planning for single parents is creating a will or revising an existing one. It’s essential to make sure your wishes are clearly stated and legally binding in the event of your death.
Your will should include legally binding instructions regarding the distribution of assets after you’re gone. This includes naming beneficiaries, outlining specific gifts, and assigning assets to trustees. It also should include important details such as naming someone to care for your children if both parents have passed away and specifying funeral arrangements.
If you already have a will in place, it’s important to regularly review and revise it as needed. Make sure that information is up-to-date, including current asset values, contact information for beneficiaries, and any changes in family relationships. There may be times when a major life event such as marriage or divorce requires a revision to ensure the document accurately represents your wishes at all times.
Create Durable Power of Attorney and Healthcare Directives
When estate planning as a single parent, it is important to create a durable power of attorney and healthcare directives. A durable power of attorney (POA) is a legal document that gives another person the authority to make decisions on your behalf if you are incapacitated or unable to communicate. It can be used for anything from financial transactions to medical care.
Healthcare directives are also an important part of an estate plan. These documents state your wishes regarding medical care in case you become too ill to express them. This includes decisions about life support and other treatments, as well as organ donation preferences.
It’s essential to name specific family members or close friends who will be responsible for handling these matters according to your wishes. Even though this is a difficult conversation to have with those involved, it is important for protecting the best interests of yourself and your family in the event of a serious illness or death.
Consider Guardianship for Minor Children
As a single parent, guardianship is an important consideration when estate planning. Guardianship gives someone else the authority to make decisions on behalf of your minor children in case you become unable to do so. It may include decisions about education, healthcare, and other matters.
When considering a guardian for your children, pick someone who has similar values to yourself and would be willing and able to take on this responsibility if the need arose. This can be a family member or close friend, but it should be clearly stated in legal documents that they are the desired guardian should something happen to you.
It’s important that you have these conversations with those involved ahead of time so everyone is clear about what will happen in case of death or incapacitation. Estate planning as a single parent is crucial for providing financial security and protection for your minor children now and into their futures.
Investigate Life Insurance Policies to Provide Long-term Financial Support
When estate planning as a single parent, it is important to investigate life insurance policies. Life insurance can provide financial security and peace of mind that your children will still be provided for long after you are gone.
The type of policy and the amount of coverage you choose will depend on your individual needs and situation. It is advised to get advice from a professional regarding which life insurance policies may make the most sense for you.
It is also important to have an updated will in place that outlines what would happen with any life insurance payouts and other assets that go to your children upon your death. This helps ensure that the funds are used for their benefit according to the wishes outlined in your estate plan.
Need Help? Margerie Law is Here for You
Working with an experienced estate planning attorney is one of the best investments a single parent can make when it comes to creating an effective and legally sound plan for their children’s future.
I’m Paul Margerie of the estate planning firm Margerie Law. We are proud to be a trusted, reliable, and experienced estate planning team who understands the needs of single parents. We offer personalized service and can help you draft an estate plan that addresses all the legal aspects, including guardianship decisions, life insurance policies, wills, and trusts.
Ready to get started with your estate plan? Click here to contact us today.
By Paul Margerie, Owner of Margerie Law
Paul Margerie of Margerie Law is a knowledgeable and experienced estate planning attorney based in Wauwatosa, WI. With years of experience helping families and individuals with their estate plans, he offers a gentle touch that puts his clients at ease. He understands the sensitive nature of this work and ensures that all details are taken care of with precision and accuracy. He strives to help each client achieve peace of mind that their future is protected by providing personalized advice and creating tailor-made solutions that fit their individual needs.
