Single parents carry an incredible amount of responsibility—from daily chores to big-picture decisions, that means all choices, big or small, fall on your shoulders. And while you’re doing your best to juggle responsibilities and provide financial stability, there’s often a constant worry: What would happen to my child if something happened to me?
That’s where estate planning for single parents becomes not just important, but necessary. Leaving a plan in place can quiet the constant worry, knowing your child will be cared for the way you want, no matter what the future holds.
Here are the key steps and estate planning documents single parents should consider:
Creating a Living Trust: A living trust allows you to leave specific instructions on how you want your assets to be managed and distributed without having to go through the probate process. By avoiding the probate process, your assets will be available quicker, and you can ensure they are specifically used for your child. You can also distribute inheritance over time, so your child doesn’t receive everything at once.
Crafting a Will: Even if you’ve created a trust, a will is still necessary. A will is the document where you can name a guardian, outline your final wishes, and address anything that wasn’t included in your trust. Think of it as an expansion of your living trust.
Designate a Guardian: This is where you decide who would step in and raise your child if you are not around. If you do not name a guardian, the decision could fall into the hands of the court. Make sure to choose someone who shares your values and parenting style, and has the time to take on the responsibility.
Durable Power of Attorney: This document is where you name who will handle financial matters if you are unable to do so. The designated person would manage bills, rent, bank accounts, and more—so it is important to choose someone that is financially responsible to keep your finances running smoothly.
Health Care Proxy: If a medical emergency leaves you unable to speak for yourself, a health care proxy ensures that someone you trust is legally allowed to make healthcare decisions on your behalf.
Life Insurance: Life insurance provides financial stability for your child by helping cover immediate fees, education costs, or living expenses. However, minors can’t directly receive life insurance payouts, so setting up a trust to outline these budgets is essential.
Estate planning for single parents is vital. Getting your estate in order sooner rather than later is important for protecting your family. If something were to happen and you don’t have a will in place, it can take longer for your family to access your assets and leave them with a legal mess. Read our blog to learn more about what could happen if you pass away without a will.
However, with a bit of pre-planning, chaos can be avoided. Parenting requires a lot of attention and work, but we’re here to help ease the load. Contact us today and we’ll make the process as simple and stress-free as possible. You don’t have to figure it all out at once—just start the conversation.
