Important Components of Estate Planning When You’re a Parent

Important Components of Estate Planning When You’re a Parent

When you have a family, you do everything you can to provide the best for them. One thing you may not think about, though, is who would do the same thing if you were to pass away? Estate planning is a vital part of caring for your family. Here are a few steps to get you started.

Decide on Your Child’s Guardian

Do you have a relative or friend with whom you would trust to raise your child? That is the ultimate question you must ask yourself. It’s necessary to document this decision in your will because this process ensures your decision is honored. If no guardian is selected, the state determines who they believe is most qualified, and that may or may not be what you would have wanted. If you are unsure how to go about this process, an estate planning attorney Sun City AZ may assist you.

Establish a Trust

A trust protects the assets that belong to your family. All the money from life insurance and bank accounts is controlled by the trust, along with belongings such as your car and home. This account protects the estate from taxes, probate and certain lawsuits so you know that your children won’t lose their inheritance. Trusts can have age limitations, so young children and teenagers don’t receive a large sum of money that they don’t know how to spend responsibly. 

Create a Living Will

A living will is also referred to as an advance healthcare directive and is not the same thing as a will. This legal document explains what happens to you and your estate if you become incapacitated. These are important because you choose how you want to be cared for if you become unable to do so yourself. By making these decisions yourself, you prevent your children from having to make these difficult decisions for you. 

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Earl Barnes