It’s a tall task to think about the well-being of your children after your passing. And that’s especially true if you have children who are under the age of 18.
As difficult as it may be, it’s critical that you consider the many ways you can provide for them even after you’re gone.
Here are three things to consider:
- Purchase life insurance: With a life insurance policy, you can name your child or children as your beneficiary. This puts them in line to receive a death benefit payout upon your passing. If you want to ensure a payout, opt for whole life insurance instead of term life insurance.
- Create a trust: There are many benefits of a trust, including the ability to quickly pass your assets along to your heirs upon your death. This is more efficient than a will, which has to go through the probate process. Also, with a trust, you can add stipulations as to when your children receive some or all of their inheritance. For example, you can stipulate that they must graduate from college before receiving their share.
- Name a guardian: This isn’t a direct way to financially provide for your children after you’re gone, but it’s still an important step to take. The person you name as guardian will raise your children if you pass on before they reach the age of 18. You trust this person to provide for your children in the same manner as you would.
These are just three of the many ways to provide for your children after you’re gone. By taking these steps, you’ll feel better about anything the future could throw at your children.
If you have questions or concerns about providing for your children after your passing, contact our law firm to speak with an experienced estate planning attorney.