Nobody knows what tomorrow will bring and parents of young children should especially be cognizant of that fact. If something were to happen to you or your spouse, there are certain documents that should already be in place to protect your children and the assets theyll inherit.
Life Insurance
This may seem like a no-brainer but the fact is, many people have little or no life insurance. And while the cost of a new policy might seem unnecessary, the costs your heirs will have to face without one are considerably greater.
Life insurance can help pay any estate or income taxes that might be due, cover funeral expenses, pay off debt and also help fund a trust for your childrens future.
Guardian and Conservator
There are two things youll need someone else to manage on your behalf: your childrens well-being and the assets theyll inherit. A guardian takes care of the day-to-day care, such as deciding where your children will live and go to school. The guardian will also have the ability to make medical decisions on the childrens behalf and be responsible for their upbringing.
A conservator on the other hand, is responsible for handling the assets of the children until they reach legal age. This person manages the money youve left for your minor children. They will ensure the investments are performing adequately or they can be charged with doling out sums of money for specific accomplishments or life events.
You can give both responsibilities to the same person if you choose, just be sure that this is your intention.
Will or Trust?
While a Will is definitely better than nothing, a trust gives you a few more options when planning for minor children. With a trust, you can not only designate a guardian and conservator for your kids, but you can also structure the trust to provide for their well-being while theyre growing up and then continue to provide incentives later in life. A trust also keeps the estate out of probate, so you dont have to worry about those added expenses.
To find out how to best protect your minor children, call our offices today.
About the Author:
To learn more about estate planning and protect you from the cost of long term care, please visit the website of the experienced estate planning attorneys Oklahoma City OK of the Parman and Easterday today.
Loading ...