Very few Nevada residents would disagree that being a single parent is a challenging — yet rewarding — job. Single parents spend every day doing whatever they can to make their children’s lives better. One area where many of them may be lacking, however, is in estate planning. No one likes to think of the possibility of not raising his or her children to adulthood, but that possibility is always there, and, without the proper planning, the futures of a single parent’s children could be in jeopardy.
Numerous questions can be addressed in an estate plan. One of the primary concerns of many single parents is who will become their children’s guardian if they become incapacitated or pass away. This issue can be addressed using both a will and a power of attorney.
The next question is who will manage financial affairs on behalf of minor children, since they are neither old enough nor allowed by law to manage their finances for themselves. A revocable trust can be helpful in this situation because it allows an individual to remain fully in charge of his or her assets during life, yet, if he or she becomes incapacitated or dies, the appointed trustee can take over the management of the assets. The trust allows for as seamless a transition as possible under the circumstances. In addition, a person has the ability to control when and how distributions are made.
Other estate planning documents can be used to protect a Nevada single parent’s children as well. Fortunately, it is possible to tailor these documents to a person’s needs as long as the provisions are not contrary to public policy or illegal. Therefore, a parent can have peace of mind from knowing that his or her children will be taken care of should the unexpected occur.
Source: The Huffington Post, “Estate Planning and the Single Parent“, Alexandra Smyser, Jan. 16, 2015