TRUSTS CAN HELP SINGLE PARENTS WITH ESTATE PLANNING
May 30, 2019
Single parents in California may have particular concerns when it comes to planning for the future. In general, when people think about making wills or trusts and planning their estate, they think about how they can help to ensure their children have a brighter future. The same is true whether the kids in question are already adults or if they are still minors. However, when single parents have minor children, they may be even more concerned with how the process will work to pass their assets on.
While a parental death is nearly always devastating, this can be especially true when single parents are concerned. If the child's other parent is an active presence in his or her life, concerns may be somewhat allayed. However, there still may be serious questions about financial management of the assets left behind. Single parents may need to think about who they would ask to serve as a guardian if the child's other parent has died or is unfit.
Because minor children cannot handle their finances directly, a trust is an important element of the estate planning process. The assets in the trust will be managed by a trustee for the best interests of the child. These trusts can include the parent's estate as well as life insurance and retirement fund proceeds. It can include detailed provisions for the use of the funds to benefit the child as well as a timeline for the child to control the assets directly at a future point in time.
Single parents have a lot to consider when they think about their children's future. An estate planning attorney can help them to draft and execute trusts that can work to protect their children and ensure their well-being.