When parents in New York set down to create an estate plan, one of the most important things they consider is what will happen to their children if they pass away unexpectedly. Who will care for them, will they have enough money and who will walk them through the steps of grieving after losing their parents? These can be hard topics to face but are very important if you want to adequately prepare to care for your children.
The first thing to consider is who will care for your children if you die. According to Northwestern Mutual, you should ask if the person you have chosen lives close or would relocate. Also, consider if the person is physically able to take care of your children. Do they have stable relationships and finances, and will they give your children the type of life you would want them to have?
Next, consider if you have life insurance or a trust. One of the most important parts of life insurance is that it provides financial security for your children if anything were to happen to you. When you purchase a life insurance policy, the beneficiary could be the person who oversees caring for your kids. Also consider that inheritance money is not available immediately, even for the guardian of your children. If you want to avoid confusion about where your money goes, it may be a good idea to consider a trust.
One last thing to consider is what will happen if you are injured or sick. Estate plans are as important for those who need someone to make decisions for them as they are for those who pass on. In your will, it is important to state who you want to make financial and physical decisions for you if you are incapable. This can be done through a durable power of attorney or health care directive.
This is for educational purposes and should not be interpreted as legal advice.