Parents should protect minor children
Protecting your children financially in the event both parents should prematurely die is a concern many of us consider but so few take the steps to implement. Just a few moments with your attorney can guarantee that your wishes for your children will be carried out. Here’s what you can do:
1) Life insurance is step number one in protecting your children in the event of your death.
2) Without any planning, a court will determine two key elements with respect to your children’s future: First, who will be responsible for their care and upbringing; and second, who will be responsible for the insurance proceeds you, hopefully, have provided for them. It is likely that both of these will be the same. Thereafter, as each of your children reaches the age of 18, their share of the insurance proceeds will be distributed to them without condition. So, you hope that the kids go to someone in whom you have confidence, and that the children get a large chunk of money at the usually responsible age of 18.
3) With planning, you can accomplish several tasks. You can dictate at what age the children will get the insurance proceeds. You can determine who raises the children and who watches the money. While it is customary for the two to be the same, oftentimes the family member you want raising your children may not be in a position to maximize the investment of the money. Thus, you can control this division.
4) You can also spare your family any unnecessary heartache that may arise if more than one relative feels strongly about stepping in and raising the children. While it appears to be a wonderful thought, the emotional anguish that will be heaped upon the family – plus the attorneys’ fees in what becomes a custody dispute – is something we should all strive to avoid. Remember, both parents may have brothers, sisters and, possibly, both sets of grandparents still alive,
5) Your own desires for your children can be realized. For example, if you want your children to go to Jewish day school, or if you want your children to take out student loans rather than have college paid for in full, it is best to let the future guardians know this. We can all still have an impact on our children’s lives, even if we’re not physically there, but only if we’ve taken the necessary advance steps to relay this information to those who need to know.
In other words, it’s easy to provide for your children while you are with them. It’s satisfying and also loving to know that you can provide for them even when you are not with them.