A single parent has a heavy burden. Not only are they solely responsible for providing emotional support and care, but they may also be a child’s only financial provider. Below are several things for a single parent to consider when planning for their children’s futures.
Focus on Estate Planning
It is essential for parents to make arrangements for childcare in the event of a sudden illness or death. To do so, the parent needs three important documents:
• A will detail who will care for the children and how one’s assets will be handed down. One of the will’s key functions is to choose a guardian for minors. When choosing an estate executor, the person should be trustworthy and well organized. An Estate Attorney in Chico CA can help as well.
• A power of attorney document, which gives others the right to make legal decisions on one’s behalf should they become incapacitated.
• A medical power of attorney, which gives a person the legal right to work with doctors on behalf of a sick or incapacitated patient.
Plan Cash Flow
Some parents have irregular income streams. If one is widowed or divorced, they may have received an insurance payment or SS benefits for the children. Social Security benefits, child support, and spousal support payments, however, can be reduced or stop completely with time. It is important for single parents to project their income over several periods and to make changes to cover any shortfall. Single parents should consider setting up a trust for their children. In a trust, assets are held and overseen by an elected trustee. An estate planning attorney can help a parent choose a trustee in much the same way an executor would be chosen.
As a parent, one knows how hard it can be to stay up to date on everything, especially financial matters. While securing one’s finances may require a significant time investment, addressing such issues can help a parent reassure themselves while taking care of their children’s financial future. Everyone’s situation is different, and single parents should visit the Law Office Of Raoul J LeClerc to consult an Estate Attorney in Chico CA for specific advice.