Most new parents think about planning for the future as establishing a college fund and doing similar activities. They might not think about having to make a plan for what will happen with their children if they pass away. Unfortunately, failing to plan for you and the other parent passing away before the children are adults can mean that your kids are thrown into a life of uncertainty.
As you’re thinking about what you want your child’s life to be like if you pass away, you need to determine who is going to care for them if you pass away. You should pick someone who is able to keep up with the demands of raising children and who will raise them with the same values as you would.
You also have to consider the financial obligations that the person will have to handle. You might be able to lessen the stress on them by making financial provisions. These can come in the form of setting up trusts and leaving assets for them in the will. You can also give them your financial accounts by using the payable on death designation option on your checking, savings and other similar accounts.
The life insurance policy you have might also be used to help support the children. Some adults choose to get a policy that only covers their funeral and burial. If you have children, try to think about the expenses that they might have and determine whether you can help cover this with a decent policy.
Your estate planning attorney can help you to find the options that you have for making sure that your children have stability if you pass away.
