Phoenix Tax Law Blog


Being Smart About Your New Family’s Future

Regardless of your age or how healthy you are, accidents and illness can strike at any time; life does not discriminate. What would happen if you were not there to help provide for your family? Part of being a responsible spouse or parent is planning for the future to protect your loved ones from a worst case scenario.

First, appoint a trustee for the estate to handle all of the financial affairs, bills, assets, and the hiring of an attorney. This person should be a reliable and trustworthy individual, often they are family members, or professionals, like accountants.

Secondly, name a guardian for your children in case one or both parents die. As long as one parent is physically and mentally capable of raising children themselves, they can have the child in their custody. If both parents pass away, make sure you entrust your little ones with a responsible and loving person who can adequately take care of them. If you do not appoint a guardian, the courts will appoint someone who might not be the most ideal fit for your child.

Third, look over your life insurance policy. If one parent was lost, that could mean a loss of income or a loss of child care. Make sure your policies are able to protect your family from being financially devastated. If you haven’t already bought a life insurance policy, now is the time to do so.

Fourth, make a plan to divide up your assets, and have someone manage the children’s inheritance. Usually the assets go to the surviving spouse, but if both parents have deceased, the assets can be used to help provide for the children, so it is important to plan ahead. If there is no one to manage the children’s inheritance or assets, the court will have a professional come in to do the job, which is not free.

Be smart and protect your loved ones from the uncertainty of life.

Posted in Estate Planning |