Estate Planning for Parents with Minor Children
If you are a parent, you are all too aware that summer break is approaching quickly (especially for those parents in Rockford!) Our kids are anxiously awaiting their time away from school, while we are constantly thinking about new and fun ways to keep them entertained.
Have you started to think about your summer plans? How much time have you spent preparing to ensure that your children are cared for during the summer months?
For all the time that you have invested planning for your children’s near future – have you thought about their long-term future? Have you considered the possibility that if something unexpected were to happen to you, you could potentially be putting your children at risk?
Whether you have little kids or teenagers it is critical to ensure their safety and financial security, should the unexpected occur.
So, what steps can you take to make sure your children are protected?
Let’s take a look at some scenarios and considerations.
What happens when one parent passes away?
When a family with minor children experiences the loss of one parent, it can be a difficult and emotionally challenging situation. However, it is important to understand the legal implications so you can plan for that future. In most cases, the surviving parent will continue caring for the children. While this is not an ideal situation, it is preferable to losing both parents. However, what happens if the surviving parent remarries? Many married couples with young children may not have contemplated this possibility. Remember the story of Cinderella? Her mother passed away, and then later her father, leaving her in the care of a stepmother who was not kind. Estate planning involves addressing such scenarios and ensuring your child's well-being and financial security are taken care of.
What happens when both parents pass away?
In the unfortunate event of both parents passing away, either simultaneously or separately, the court will appoint a guardian for your minor children. By having a will in place, you can leave instructions and express your preferences regarding the guardian's appointment. It is vital to name the individuals you trust to care for your child and provide any additional relevant information to guide the court's decision-making process.
Safeguarding Your Children's Financial Future
Another aspect of estate planning is securing your children's financial future. In the event of your passing, if you have designated your child as a beneficiary of any assets or accounts, it's important to understand the financial implications. Without proper planning, the court will appoint a custodian to manage the child's financial affairs. This person may or may not align with your wishes. By creating comprehensive estate planning documents, you can have a say in who manages the financial aspects on behalf of your child.
Additionally, when your children reach the age of majority, typically 18, they will gain full control over any assets left to them.
Most of my estate planning clients don’t love this idea. It’s one thing to give an 18 year old a $5,000 gift. It is a completely different thing to give an 18 year old a $500,000 gift!
By carefully planning your estate, you can address these financial considerations and ensure your children are financially protected.
Sum It Up
Planning for your child’s long-term future is just as important as the near-one. By proactively addressing potential scenarios, you can safeguard your children's well-being and financial security.
Whether you're faced with the unfortunate situation of one parent passing away or planning for the possibility of both parents being absent, consulting an experienced estate planning attorney is the only way to safeguard the well-being and financial stability of your children.
If you live in Rockford, IL, or the surrounding areas, contact me to discuss your specific situation!
We hope you found this estate planning information helpful. As a reminder, the information presented here is for general informational purposes only. You are unique, and legal advice should be tailored to your unique situation. Do not rely upon any information here as legal advice. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship. If you would like to learn more about how we can protect your family or small business, please contact us!
Cherish Legal is an estate planning law firm based out of Rockford, Illinois. We are licensed to practice estate planning in Wisconsin and Illinois. We provide virtual estate planning services to families and legal counsel to small businesses located. Our services include: wills, trusts, power of attorney, estate plans, guardianship, trust administration, probate, and asset protection.
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