If you’re a single parent, estate planning is necessary to protect your children’s futures. 24 million children under the age of 18 live with an unmarried parent in the U.S., so you’re not alone in the challenges you face. Learn about a few tools to use to secure your children’s livelihoods after you’ve passed away.

3 Effective Estate Planning Tools for Single Parents

1. Wills

Writing your last will and testament is the only way to name a guardian for your minor children or children with special needs. You can leave child care funds for the guardian or give assets directly to your child through a will. If you don’t name a guardian, the state chooses one after you pass away.

2. Trusts 

A trust is like a safe for all kinds of assets, including real estate, insurance policies, and intellectual property. Trusts protect assets from creditors, and a trustee manages them for children until they’re mature enough to handle them alone. You can create a living trust that takes effect now, serve as trustee, and name someone else to take over when you pass away. Testamentary trusts and trustees are other options, but they don’t take effect until you pass away. Creating special needs trusts protects the assets of children with disabilities and ensures their rights to receive certain government benefits without penalty.    

3. Insurance

Life, disability, health, and homeowners’ insurance policies are effective estate planning tools that provide a variety of financial benefits for you and your child. Although insurance companies won’t pay out a policy to a minor, you can name your child’s intended guardian as the beneficiary to ensure they receive the policy’s value in the event of your passing. Generally, the younger you are when you buy insurance, the lower the premiums you pay, giving you more coverage for less money.   

If you’re a single parent seeking help with estate planning, turn to the Law Offices of Neil T. Nakamura & Associates in Honolulu, HI. The attorneys offer more than 43 years of experience helping parents plan for their children’s futures. Visit their website to explore their services, and call (808) 945-7645 to schedule a free initial consultation.