Protecting Your Golden Years

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For single parents, a trust may be a useful estate planning tool

On Behalf of | Jan 20, 2021 | Estate planning |

Being a single parent means you have a lot on your plate. Over the years, you may have learned to juggle a lot while still playing a big role in your child’s life. At the end of the day, being a parent is your most valued aspect of your life, and you want to always do what you can to ensure your child’s well-being.

Of course, you understand that you will not always be around for your child. While you certainly hope that your passing does not occur until your child has reached adulthood and you reach an old age, you also know that anything could happen at any time. Perhaps the sudden passing of your spouse is the reason you are a single parent in the first place. Whatever the reason, you want to ensure that your child will be taken care of.

Estate planning

One of the best ways you can prepare for the future is by estate planning. This process could allow you to address important decisions that could affect your child while he or she is still a minor, such as naming a guardian to care for your child if you cannot, and to address matters that could apply when your child reaches adulthood, such as receiving an inheritance.

One tool that could prove immensely useful to you as you create your plan is a trust. Because minors cannot directly inherit funds, you could use a trust to ensure that the funds and other assets are protected until you deem it appropriate for your child to receive the assets. You can also appoint a trusted and responsible person to act as trustee and manage the assets until your child comes of age.

Other benefits of a trust

Trusts have many benefits, and you can include specific instructions for when and how the assets can be used. The trust also protects assets from unscrupulous parties who may try to mismanage the funds before your child comes of age. You could also leave other instructions relating to the care of your child, who can make important decisions for him or her, and more.

Though you certainly hope to be around for your child as long as possible, being prepared nonetheless could prove immensely valuable. It could bring you peace of mind to know that your child will receive appropriate care, and your child will benefit from the instructions you leave behind as well. If you feel that a trust could be useful to you, you may want to consider creating one as part of your estate plan and discuss your options with a Georgia attorney.