Parenthood changes life in every way. While the immediate physical needs of a new baby are obvious, there are important practical concerns to think of as well. No one likes to think of a time when they may not be around to watch their children and grandchildren grow. Yet, life can be unpredictable and protecting your children’s future is something to consider.
There are several essential financial documents every parent should have to not only ensure their own financial and medical preferences are honored, but to also make sure their children are properly cared for should anything happen to them.
Parents should consider the following:
- Beneficiary designations: Naming the Pay on Death beneficiaries on your 401k and 403b retirement accounts establishes who will inherit these funds upon your passing. Your beneficiaries may change with significant life events, such as marriages, divorces, and deaths, so check in with your family law attorney often to ensure this information reflects your current situation.
- Living Will/ Advance Healthcare Designation: This document accomplishes two goals. First, it names the person you want to act on your behalf should you become physically unable to make your own healthcare decisions. This person will also have access to your medical records. Your family law attorney may recommend appointing your children when they turn 18. Second, a living will/advance healthcare designation allows you to make your personal healthcare preferences known to loved ones and medical providers. You can address organ donation and end-of-life care in your living will.
- Trust: A trust is used to pass assets on to a designated trustee who holds them on behalf of the beneficiary. Using your trust, you can establish exactly how and when these assets are to be distributed under your trustee’s care. Trusts can spare your loved ones from paying certain fees and taxes upon your passing.
- Power of Attorney: This document is essential for every parent. It establishes who will manage your financial affairs should you become unable to do so for any reason. Having a Power of Attorney agent in place ensures your immediate expenses are taken care of while your estate is sorted out.
- Will: Your will is the blueprint of your wishes for your family’s future. It not only addresses major financial decisions after your passing, but also designates who will care for your child should you pass away before he or she reaches the age of 18.
No one likes to think of leaving their family or the custodial and financial impact that your loss may mean for your loved ones. These legal protections provide the peace of mind you need to know your family will be cared for the way you intend for years to come.
Towson Family Law Lawyers at Huesman, Jones & Miles, LLC Help Clients Establish Wills, Powers of Attorney and Advance Healthcare Directive
Towson family law lawyers at Huesman, Jones & Miles, LLC take the confusion out of the complex financial and legal documents. Call 443-589-0150 or contact us online to schedule a free consultation to learn about all the estate law and guardianship legal services available. With offices in Towson and Hunt Valley, Maryland, we serve clients from Baltimore, Baltimore County, Bel Air, Columbia, Westminster, Essex, Monkton, Sparks, Parkton, Pikesville, Carroll County, Harford County, and Howard County.