Parental Estate Planning Tips

As parents, we naturally want what is best for our children. We will take them to doctors regular to make sure they are healthy; we will feed those healthy foods to make them grow and a mix of sweet treats to keep them happy. We will sign them up to play sports or take a dance class, and we will make sure they do their homework on a regular basis; even if they are college students living across the country. While we may do whatever we can in order to help the kids, there are also many things that must be taken into consideration that may not naturally come to mind, and this is the fact that we may not be around forever.

Whether it is a calamity, a freak accident, or a tragic illness; life can be cut short in the blink of an eye. If this happens, we want to make sure that our lives are planned out in such a way that our children are well taken care of in the event of losing both their parents. It may be hard coming to grips with having to go through the process of estate planning because it makes to possibility of death seem so much more real. Despite the fact that death can come at any point in time, we may not be ready to admit that there is a chance that our growing children might lose their parents at a young age. Even if you don't die in a freak accident while you kids are still growing up, estate planning is a process that allows you to ensure that in the event of your death, your property, assets and the like are divided in a way that you see fit. Here are a few simple tips to consider as parents when planning your estate for your children's sake.

Creating a will is an essential part of the process because it is here that you will list out whom exactly is responsible for your children in the event of your passing. While your passing may not (hopefully!) happen until he kids are much older, knowing that they will be in good hands can bring you some peace of mind during your daily life. Choosing a guardian is so crucial because they will have the rights over the type of education the children get, where they will live, health decisions, etc. and you want to make sure that this will be someone who not only honor your wishes but keep your kids best interests in mind. If you so choose to have a separate person manage the money until he kids are of age, you can also list a conservator in the will.

Next you will want to create a trust, which is essentially how your children will receive your assets after you die. Imagine if you have things like life insurance and retirement savings accounts, etc. and they get all of this in a lump sum when they turn 18 or 21 years old. Chances are that the money will be gone faster than it came, because most college age adults are not interested in saving for a down payment on their future home when they have to worry about finals week still. A trust will be a fund that is set aside for the kids and the designated trustee will have the power to use the funds for things like college funds, living expenses, etc.

Lastly, because this process can be very complex you will want to make sure you find a probate and estate planning attorney in your area to help you with the numerous details. While setting up a trust and a will are crucial aspects to the process, they are not everything. By hiring an attorney they will make sure that your assets and your family are well protected and planned for.