A single parent is solely responsible for the physical, emotional and financial well-being of a child. This is an immense responsibility, and it's easy to see how some Virginia parents may get caught up in day-to-day life and overlook plans for the future. Estate planning is critical for single parents, and they may benefit from using trusts as a way to accomplish their goals.
A trust is a way to set aside and protect assets for a specific use in the future. In the event that the parent passes away, a trust will accept funds from his or her estate, IRA accounts, insurance settlements, retirement accounts and more. This money would be protected and used solely for the benefit of the child. A parent can also name a trustee, which is a trusted individual named to oversee how the funds in the trust are used.
It is also possible that a trust can help a parent accomplish other types of estate planning goals. He or she can name a guardian for the child, outline who can care for the child, who can have visitation with the child and even which family members can take the child on vacation. For single parents, a trust can allow him or her to ensure the security and safety of the children for years to come.
It is impossible to predict what will happen in the future, but a strong estate plan can allow a Virginia parent to look to the future with confidence. Through a thoughtful will and even trusts, a parent can care for his or her kids even after death. As with all important legal and financial decisions, it is prudent to first discuss these needs with an experienced legal professional.