Many parents don’t think about estate planning until it’s too late. This often leads to difficult decisions for the family when they pass on, and it can even cause financial hardship to their children. It’s never too early to start thinking about estate planning. Here are a few things to consider as you get started.
Understand who will care for your children if something happens to you
Smart parents appoint a guardian for their children in their estate plan as early as possible. This is someone who will raise your children if you’re no longer able to do so. You can appoint a family member, friend or even a professional. When you do so, just make sure to select someone who shares your parenting philosophy, is responsible, and has the time and energy to raise children.
Understand how your children will be taken care of financially
Part of estate planning is ensuring that your children get taken care of financially if something happens to you. You can do this in a few different ways, such as setting up a trust fund or making them beneficiaries of your life insurance policy. You’ll want to make sure that there’s enough money to cover their needs, such as food, shelter, clothing and education.
Update your estate planning documents regularly
It’s important to review and update your estate planning documents regularly, especially as your family circumstances change. As your children grow older, you may need to make changes to who you’ve designated as their guardian. You might also want to consider changing how your assets get distributed. By updating your documents regularly, you can ensure that your wishes are carried out and that your family is taken care of.
Estate planning is an important part of being a responsible parent. With a little bit of thought and preparation, you can give your family the peace of mind they need.