How can trusts benefit single parents?

| Jun 20, 2019 | estate planning

Parents in Dublin generally want to provide for their children, so it makes sense that when executing a will or trust they will name their children as their heirs. This is true whether the parent is part of a married couple or whether the parent is raising their child on their own.

However, there are certain estate planning considerations single parents should be aware of, to ensure their estate plan meets both their needs and the needs of their children.

First, the backbone of many estate plans is a trust that will be managed by a trustee. In a trust, a parent can name their child as the beneficiary to their estate. A trust can also dictate how funds should be used, as well as how much control the child has over those funds. For example, in a trust a parent can state that the child will not receive trust assets until they are a certain age or meet other contingencies such as graduating from college. The aim of such contingencies may be to ensure the child will have financial security after the single parent passes on.

Trusts can also name a guardian, who will care for the child if the parent passes away while the child is still a minor. Trusts can also state who is permitted to make major life decisions regarding the child, if the child is a minor. In addition, a trust can state who will have visitation rights with the child. This includes someone who has the right to have the child in their care for an extended period or the right to take the child on vacation. This is especially important if the single parent has sole physical and legal custody of their child or if the child’s other parent is deceased.

Single parents in Ohio often put their child’s needs first, and this doesn’t change when it comes to estate planning. Drafting an estate plan forces parents to make some sobering decisions, as most parents do not want to think about what will happen to their child if they pass away. However, with a solid estate plan in place, single parents in Dublin can rest comfortably knowing that their estate will be handled in the manner they desire, and their children will be cared for by the person of their choice should they pass away before their child is grown, and beyond.