Estate plan tips for single parents

For single parents in Nevada and elsewhere, it is important to have an estate plan in place. This is because a minor child will still need to be cared for in the event that a mother or father passes on. An estate plan may allow a parent to determine who the child’s guardian will be and how he or she should be raised. It can also allow a parent to create a trust to provide financially for a son or daughter.

In some cases, the child’s other parent may be the best person to provide care and guidance. This largely depends on the relationship between the two parents as well as the ability of that person to provide for the child. If this is not true in a given situation, a parent can name a family friend or another trusted person to act as a guardian.

Trusts may be funded with money from an IRA, a savings account or a variety of other sources. Parents have the ability to name a trustee who will oversee the account and act in the child’s best interest. A parent can include a letter of intent or other documentation that can help guide the trustee in making decisions if the trust is vague regarding certain issues.

The use of a charitable remainder trust, special needs trust or any similar type of document may help provide for family members after a person passes. An attorney may explain what each type of trust does and how it may benefit an individual. A lawyer may also explain how to properly fund a trust either while alive or through the use of a pour-over will. Those who wish to avoid probate will need to fund a trust while they are still alive.

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