If you’re a parent, your number one priority is protecting your children—no matter what the future holds. But what would happen to your kids if something happened to you?
For parents of minor children, estate planning isn’t just about passing on assets. It’s about making sure your children are cared for emotionally, financially, and legally if you’re no longer able to do so. Without a clear plan in place, your loved ones could face court battles, delays, and even uncertainty about who will raise your children.
What Happens if You Don’t Have an Estate Plan?
Failing to create an estate plan when you have young children can lead to serious consequences:
-
The courts will decide who raises your children. Without a named legal guardian, a judge will make this decision—possibly choosing someone you never would have.
-
Your children could wait months or years for access to financial support. Assets tied up in probate can leave guardians scrambling to meet their needs.
-
Family disputes may arise. If your wishes aren’t clearly documented, your loved ones may argue over what “you would have wanted.”
-
Inheritances can be lost or mismanaged. Without the protection of a trust, your child’s inheritance may be depleted by creditors or poor oversight.
Essential Estate Planning Tools for Charlotte Families
When formulating the terms of your estate plan, you must keep several vital components in mind. When you have children, you should consider the following items in your estate plan:
Name a Legal Guardian
When you have minor children, arguably the most essential element of your estate plans is naming the party who you wish to take care of your children if you pass away.
If you do not already have these plans for guardianship in place, you should include them as part of your estate plan. Otherwise, you could put your entire family at risk.
Protect Assets Through a Trust
Setting up trusts may be in your best interest if you hope to pass on your assets to your children when you pass away. Here, your estate avoids probate..
Establishing revocable living trusts or irrevocable living trusts could help too. Revocable trusts can be changed, while irrevocable trusts cannot. If creditors attempted to come after your assets upon your passing, an irrevocable trust may shield your children’s inheritance from judgment.
Additionally, when setting up a trust, you can determine when and how your children receive certain types of assets. For instance, if you decide to set up a trust for your child’s inheritance, you could choose whether your children receive payouts as teenagers, at 25, 30, or even older, as well as the purposes for which they may receive payouts.
Create a Life Insurance Policy for Your Family
Another key element to your estate plans should be obtaining a life insurance policy. You must ensure your children and your child’s legal guardian can maintain their standard of living even if you pass away. Many factors determine the types and amounts of life insurance coverage you should purchase.
You should consider how much your family would need in financial support, your current income, other assets you have, and other monthly living expenses. Your estate planning attorney can go over your life insurance policy goals with you to craft one that suits your family’s needs.
Assign an Agent for Your POA Form
When you have young children, and your health declines or a traumatic illness leaves you incapacitated, you should give someone the authority to make critical medical decisions. You could assign one of your children to be an agent in your health care power of attorney form. This will allow them to give your consent to X-rays, certain medications, life-prolonging treatments, and other medical decisions.
Protect Your Child’s Future With Charlotte Estate Planning
When you have minor children, having a sound estate plan protects your children should you become incapacitated or pass away. However, the elements of your estate plans may not always be clear. With many potential options available, understanding which aspects should be included as part of your will could make all the difference.
Charlotte Estate Planning attorney Ryan Stump can help you draft estate plans that meet your family’s needs. Contact us by calling (704) 766-8836 and speak with a Charlotte, NC estate planning attorney today.
