In the United States, more than a quarter of all families are headed by a single parent. Since raising children can be expensive, it’s crucial to have a solid financial and estate plan in place to safeguard your kids in the event of your untimely demise. The purpose of an estate plan is to memorialize your wishes regarding the distribution of your assets upon your death and to make them legally binding.

In this piece, we’ll go over the basics of estate planning for single parents, including the importance of having a current will, planning for insurance and retirement, and naming a guardian.

What is estate planning?

Wealth distribution upon death is a legally regulated process, and it is handled through estate planning. A living will is just one part of comprehensive estate planning. The purpose of estate planning is to make sure that your assets, including your home, investments, and personal belongings, are distributed to the people you want to inherit after your death. By employing certain estate planning strategies, you can reduce the amount of tax your heirs must pay when they receive an inheritance. All of your dependents, including minor children, should be considered in your estate plan.

What documents do you need?

In addition to addressing the administration of your estate after your death, estate planning can help in the event that you become incapacitated and unable to make decisions about your finances or medical care during your lifetime. For a complete estate plan, you’ll need these 4 legal docs:

• Attorney-in-fact status in monetary matters (DPOA).
• Attorney-in-fact for medical care designation (MPOA).
• Will.
• Living trust.

By executing a health care power of attorney, you can designate a trusted friend or family member to make healthcare decisions on your behalf. Your wishes for your final medical care and treatment can be documented in a living will or other form of advance medical directive. If you haven’t already done so, you should create a will that specifies your final wishes and how they should be carried out.

How do Guardians help?

A guardian looks after your children and makes sure they are healthy, safe, educated, and happy.

Most children will visit their other parent if he is still alive and able to care for them. It’s possible, though, that you’ll have to look elsewhere if they can’t legally take custody. If a probate court determines that the surviving parent or guardian is unfit, it will appoint someone else from the family or the community who will act in the child’s best interests.

The purpose of estate planning for single parents is to provide for their children in the event of their death. Having your children’s future care needs laid out in a set of legally binding documents that you know have been carefully drafted and properly executed can provide you with priceless peace of mind.