Your children count on you to support them throughout the time they live at home. They usually don’t worry about what’s going to happen to them if you and their other parent both pass away, but this is something that you need to consider. As their parent, you have the responsibility to set a plan in place for them now just in case the unthinkable happens.
When you’re setting up the estate plan, one critical component is the guardianship designation. You must ensure that you’re thinking carefully about who is going to raise the children if you aren’t able to. This person must be able to keep up with the kids and raise them in a manner in which you’d approve.
If you have more than one child, you can name one guardian who will raise them all. You can also name a different person for each child. You have to do what you feel will be in each child’s best interest because the court will consider this if the guardianship has to be put into place.
You can help the guardian to cover the financial expense of raising your children with the rest of your estate plan. This includes passing along assets through the will and trusts. You can also check things like financial accounts and life insurance policies to find out who you have listed to receive the funds from those. This is known as the payable-on-death designation.
Setting up your estate plan doesn’t have to be difficult. Working with someone who is familiar with the documents you’ll need can make it even easier. Just remember to set things up based on what your kids need now. Certain parts of the estate plan can be changed later if their needs change.