The Millennial parent is far different from their predecessors. Their mantra is simple and echoes that of
This new parental breed will not follow their children around ALL the time. They want their kids to learn independence and function with limited supervision. They often ask themselves, “How can I train the children to be themselves?”
There is nothing wrong with this parenting mindset, but the better question to ask is: “What can we do now to protect the kids in case something happens to us?”
No one likes to talk about disability or the possibility of death, but responsible parents are always prepared. It involves asking a lot of the tough questions and expecting the worst.
They should plan now, talk with a trusted Denver estate planning lawyer, and get down to business. But what is their first step?
Decide on an Emergency Guardian
Fact: no one can raise the kids better than the parents themselves. But when something happens to both parents, they will need someone to take their place – especially if foster care is not an option.
They should choose a family member or trusted friend to stand in their place should the unthinkable happen. The chosen alternative should be a reliable individual who is willing to take the kids in. Parents must write down their names to ensure the court will honor their decision.
Life Insurance is a Must
Getting started on a life insurance ensures the children will maintain their standard of living and also pay for valuable goals such as school fees. While the insurance will not replace the parents, it’s a big help for the kids.
Fortunately, there are numerous types of insurance policies available (e.g., variable universal life, whole life, term life, etc.). Parents should partner with their financial advisors to determine the best policy for them and the children.
Protect their Inheritance
The house, car, bank account, and the 401 K – where do all of these go when the parents die? In the worst cases, inheritance battles ensue between the children and relatives. They encounter delay and probate courts.
Setting up a trust for asset management protects the kids from probate courts and depleted assets. It also keeps them from using their money until they turn 18.
Young parents should start planning for their future to ensure the kids will be safe. By consulting an attorney today, they can straighten plans out.