There are many challenges that come with being a single parent. A single parent may find him or herself in a situation where he or she is solely shouldering the burden of ensuring a stable financial future for his or her children. Michigan single parents may want to stop and think about how crafting a comprehensive estate plan is one very vital move that should be made sooner rather than later.
An estate plan can be the best way for a single parent to protect his or her assets and his or her children’s futures. If there are minor children to consider, not having an estate plan that clearly states who will be guardian of those children can lead to a potentially disastrous situation. Funds and benefits also need to be allocated for the care of those minor children. Without an estate plan, the state, or possibly an ex-spouse, may be in charge of those assets and very important decisions.
Bank accounts and retirement accounts also need to have designated recipients. In some cases, funds will not be released to children until they reach adulthood unless there is a legal plan outlining the parent’s wishes. Basic bills and liabilities can also be a problematic if a single parent does not have an estate plan. Without an authorized person handling important financial decisions, assets and funds can be wasted and never become available to the children who should benefit from them.
The process of creating an estate plan can be daunting. However, for single parents in Michigan, not having one can make things very difficult for those left behind. With a comprehensive estate plan in place, one that is customized to fit a specific situation, a single parent can have peace of mind about his or her children’s future well-being.
Source: insurnacenewsnet.com, “Single? Estate Planning Is Crucial“, Erin E. Arvedlund, Nov. 2, 2014