Becoming a parent means taking on an immense amount of responsibility. Parents have to protect children from danger and teach them how to navigate the world. They have an obligation to provide for child’s basic needs.
Unfortunately, parents may not be able to see that task to completion in every case. Sometimes, tragic circumstances result in a parent passing before their children become adults. Those children are then socially and financially vulnerable.
Estate planning is an important undertaking for any adult but especially for parents. An appropriate estate plan can protect children via the three different actions mentioned below.
Selecting a guardian
The loss of a parent might lead to a child ending up in state custody or living with family members who aren’t particularly supportive or compassionate. By selecting a guardian who can perform many of the same functions that parents do, parents can ensure their children receive proper support if anything happens to them.
Providing financial support
Raising children to adulthood is an expensive process. Parents often invest hundreds of thousands of dollars or more in their children by the time they become adults. Leaving an inheritance for children, possibly by funding a trust, is important to ensure their comfort when they lose their parents. Reviewing life insurance and personal financial obligations can help people ensure they leave adequate resources for their children when they die.
Addressing potential incapacity
Premature death is not the only issue that could prove detrimental to the children in a family. If either of their parents experiences a sudden medical emergency, that could be equally problematic for the entire family. Health issues that leave someone incapacitated could put stress on the family as they try to manage medical matters. Resources could also be at risk if there is no one authorized to handle financial affairs. Children may benefit from enhanced stability when their parents draft advance directives and powers of attorney to protect the family in the event of their incapacitation.
Creating an estate plan is one of the most effective means of providing support for children regardless of what may happen to the family in the future. An estate plan can provide parents with greater peace of mind and children with necessary practical support if anything unexpected happens.