Every parent should have an estate plan but simply having one is not enough to ensure loved ones are taken care of after the primary income earner dies. There are some steps to take with the help of an experienced Estate Planning Law Attorney in Lubbock TX that could help ensure the plan is valid and does what it is intended to do.
Review Guardians and Beneficiaries Annually
As children get older and the lives of the people named as their guardians change, it’s important to make sure the designations continue to meet a family’s needs. Parents don’t typically die while their children are young but if the unthinkable happens, being prepared could help ensure the children aren’t in limbo while the court finds them a guardian.
Minor children should not be named as beneficiaries to their parents’ assets through their will. Instead, most assets should be placed in a trust with a trusted person in charge. The person named as the trustee should be financially stable and have a good relationship with the children. A living trust can be changed as often as necessary to ensure the right people are assigned to take care of the children’s welfare. An Estate Planning Law Attorney in Lubbock TX may advise parents to name a bank or attorney as trustee instead of an individual.
Assess Life Insurance Coverage
A single person doesn’t need much life insurance. However, as their lifestyle changes and they get married and have children, it’s important to keep enough life insurance to replace their salary if they die while their children are young. Life insurance needs change as a person accumulates wealth. There’s no need to pay hundreds of dollars a month for a life insurance policy when a couple has over a million dollars in assets. Increasing or decreasing the coverage amounts could ensure they are only paying for the insurance they need.
Estate planning could be overwhelming. Parents who want to ensure their children have the financial support they need after they die should Contact Kyra K. Blankenship Attorney for assistance with setting up and reviewing their estate plan.