Becoming a parent tends to change someone’s personality, social life and finances. Their priorities also shift dramatically. The well-being and protection of their children typically become more important than anything else.
Those who never put together an estate plan before may finally see the value of drafting a will. Those with existing documents might decide to drastically revise them and add additional documents to more effectively protect their children.
How can parents create appropriate estate plans for the protection of their children?
Selecting a guardian
One of the most important decisions when creating an estate plan for the benefit of children is who someone names as the children’s guardian. A guardian may take over a parent’s role when a tragedy leads to the death of a parent. Choosing someone who is capable of meeting the children’s needs and willing to accept that responsibility is of the utmost importance. New parents may need to have some difficult conversations with their family members and close friends while selecting appropriate candidates.
Arranging for financial support
Technically, children have a right of inheritance if a parent dies without a will. Tennessee law very clearly enshrines inheritance rights for children along with spouses in intestate succession rules. The decision to create an estate plan allows parents to designate specific resources for their children. They may want to take things a step further by creating a trust. Trusts can limit what guardians or a surviving parent use a child’s inheritance for while they are minors. Trusts can help preserve at least a portion of a child’s inheritance for when they become an adult.
Addressing the risk of incapacity
Parents don’t have to die to become incapable of supporting their children. In some cases, a medical emergency could render them incapable of parenting or leave them unconscious for weeks. Parents may want to create documents that address their care in such situations. Powers of attorney can designate someone other than a spouse to manage someone’s medical care and handle their household matters. Advance planning can help preserve family resources and ensure there is someone to take care of the children if a parent becomes incapable of meeting the daily necessities of child-rearing without actually dying.
Putting together a thorough estate plan is an important step for parents who want to protect their children. The sooner parents begin the process, the sooner they can have the peace of mind that comes from knowing that their children are properly protected.