This week is Safe Kids Week in North Carolina. While Safe Kids Week is designed raise awareness about protecting children from unintentional injuries, parents also need to plan to keep their kids safe from a financial standpoint should something happen to the parents. At a minimum, each parent of a minor child should have a Will that names a guardian and establishes a trust for the child.
Without a will, there is no opportunity to designate the individual (guardian of the person) you would like to care for your child in the event of your death, so the court will make that decision. Also no funds can be distributed to your child from your estate until someone (guardian of the estate) is appointed to handle the funds. This is expensive, time consuming, and complicated. In addition, the child will receive all of the remaining funds at age 18, regardless of his or her ability to manage the funds.
Also, you may need life insurance to ensure that there is enough money to raise your kids if you aren’t around anymore.
If you want your kids to be safe in as many respects as possible, it is imperative that you have a comprehensive estate plan in place. Don’t leave your children’s future to chance.