Many parents put off their need for an estate plan.  However, as a parent, it’s important to plan as soon as possible so that you and your family are protected throughout life. One of your most important decisions is the naming of a guardian.

Naming a good guardian ensures that your children will always be in good hands. Take a look at the example below to better understand this important estate planning need.  If you have any questions, or if you’d like to begin your estate plan, consult with a qualified estate planning attorney.

Example:

Joan is a single mother to her two children Samuel and Ryan.  She works hard to provide for her children as they continue to grow.

Joan always put off her estate planning because she was busy working and taking care of her children. Unfortunately, Joan was killed by a distracted driver while her children were still young.

Because she had no estate plan, her affairs will be determined in court. Her assets will be distributed based on her state’s laws. Because she hadn’t created a will to appoint a guardian for Samuel and Ryan, the court will be left to make this important decision.

The court decides to appoint Joan’s sister, Megan, as guardian. Little does the court know, Megan is an alcoholic.  With this decision, Samuel and Ryan will be forced to grow up in a toxic environment. They will also not get the level of care and attention that is needed.

Based on the facts before it, the court will make the best decision possible so that all children receive the good care and love. Unfortunately, it’s hard to the court to know every detail. This includes the history of a family member, personal problems, and family dynamics that may make an individual not fit to serve as a guardian.

Make sure that you take the time to create an estate plan so you are the one who makes the important decision of who will serve as guardian for your children.

The Potter Law Firm is a member of the American Academy of Estate Planning Attorneys.

If you’re like most people with a blended family, you would like your family to be as happy as the Brady Bunch.  Carol became “Mom” to Mike’s sons and Mike became “Dad” to Carol’s daughters.  As viewers, it was easy to forget that the Bradys were a blended family.

In our own lives, it’s not so easy to forget.  And, we shouldn’t.  Blended families call for caring communication, and careful estate planning.  Without these things, relationships can be strained, mistrust fostered, and children unintentionally disinherited.

1.  Let your children know

Be sure to let your children know that you have entered into the estate planning process.  Let them know that your assets are being protected and will be available to them when you die.  Allow them to ask questions and express concerns.

Even if they don’t admit it, they will breathe a huge collective sigh of relief and be more welcoming of your second spouse.

2.  Do not name children as remainder interest beneficiaries

While many step-parent and step-child relationships are held together during the biological parent’s lifetime, at death, conflict often arises, tearing otherwise caring families apart.

Do not give assets to your spouse for his or her lifetime if your spouse is not the parent of all of your children.  It’s not good for anyone.  Provide other assets for your children.

This avoids serious conflict over how assets are to be invested and distributed during the remaining years of your spouse’s life.  And, your children won’t be waiting for your spouse to die.

3.  Buy life insurance

If you don’t have enough assets to provide income replacement for a second spouse and an inheritance for your children, purchase life insurance to create an estate.

4.  A word about family pictures, family heirlooms, and sentimental personal property

Be sure that your spouse, your children, and your estate planning attorney know that you want all relevant family pictures, family heirlooms, and sentimental personal property to go to your children immediately upon your death.  This can be drafted into your trust.

If you have questions about estate planning for blended families to foster good relationships, consult with a qualified estate planning attorney.  Take action to both tell and show your children and spouse that you love them and will take care of them.

The Potter Law Firm is a member of the American Academy of Estate Planning Attorneys.