Parents of young children typically have a substantial number of responsibilities and daily concerns.  Parents sometimes avoid thinking about what would happen if a tragedy were to strike, leaving their children without a parent.  Although unlikely, it is always possible that a tragedy could strike. By addressing the issue now, you can create an estate plan with your children in mind and put your own mind at ease.

One of the most important concerns parents of young children have is how to ensure that the person who will care for the child in the event of your death has immediate access to the funds necessary to do so. One option is to hold title to property jointly with another person. This works well if there is a spouse, partner or other adult you trust to share title to the property. Financial accounts can also typically be converted to “pay on death” accounts. A “pay on death” account, as the name implies, requires the bank, pension administrator or other financial institution to pay out the assets held in the account to a designee in the event of the death of the primary account holder. Both of these simple steps can provide for continuity in the care of your minor child in the event of your death.

In addition, although a Last Will and Testament should be prepared — specifically to nominate a guardian in the event one is needed — a trust should also be considered. A trust allows you to retain a large degree of control over how your money will be used to care for your child

The Law Offices of Richard B. Schneider, LLC is a member of the American Academy of Estate Planning Attorneys.

Tags: Estate Planning, joint property, parents young children, trust, will

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