Estate Planning for Single Mothers

 Posted on January 05, 2023 in Estate Planning

Oswego Living Trust Lawyers

Every person requires a proper estate plan, but this need is especially crucial for single mothers. Single mothers are some of the most hardworking individuals, and they are tasked with dual responsibility as caregivers and providers. If something were to happen to a single mother, she would want to ensure that her children will have a proper guardian to continue to care for them, as well as guarantee that her children will be financially prepared by providing them with the best inheritance possible.

Establishing a Proper Caregiver

One of the benefits of an estate plan is that a mother can designate who she would like to take over as guardian of her minor children. Without this designation, it is most likely that the other parent will be given full guardianship over the minor children. However, this designation is not always in the best interest of the children for many reasons. Whether there is a lack of relationship, lack of parental responsibility, or distance that would severely hinder the children's permanency, a single mother is tasked with the responsibility of making this decision. It is imperative that the minor children are placed with someone who is familiar and will be able to provide for them both financially and emotionally. By creating an estate plan, the single mother can make her primary guardian designation, as well as contingent guardians, should the primary guardian be unable to care for the children.

Ensuring the Financial Security of Assets

A primary goal of a single mother is to make sure that her children are protected financially once she passes away. The best way of achieving this outcome is to create an estate plan that lays out all financial assets that the mother has and as well as create a distribution method that she would like to follow for distributing her assets upon her death. Without having this designation established before death, Illinois Intestacy Statutes will be followed, which may result in a designation that is not preferred by the mother.

Additionally, having an estate plan will also designate who will be in charge of holding that money for minors. A minor child cannot receive an inheritance until the age of 18. Just like a guardian of parental responsibilities, a single mother should also choose someone who is financially responsible and can be trusted to protect the inheritance of the minor children. If this is not done, the court will decide who the guardian of the estate will be, which can be problematic and contrary to the mother’s wishes.

Benefits of a Trust in Addition to a Will

To effectively ensure that minor children are taken care of should a single mother pass away, a Trust will provide a greater sense of security for the mother. One of the benefits of a Trust over a Will is that a Trust can hold a Children’s Trust, which is specifically used for minor children. If a Will was the only document in a mother’s estate plan, the minor children would receive the totality of their inheritance once they reach the age of 18. This is not always ideal for mothers because they know firsthand if their children are financially responsible. A Children's Trust allows the mother to set specific ages that she would like her children to receive either all or a portion of their inheritance. In addition, the Trustee, or the individual who is responsible for managing the Trust and its assets, has broad discretion on whether to grant an advancement. An advancement is when the minor child is going through an experience in their life that the Trustee deems to warrant the release of some of the Children's Trust funds before the age listed within the Trust.

The second benefit of having a Trust as part of an estate plan is that there is no need to go through Probate upon the death of the mother. Probate court can be extensive, time-consuming, and expensive, all of which will harm the minor children and could take away from their inheritance. If all of the mother’s assets are placed into her respective Trust, then, upon her death, those assets will be distributed according to the terms of the Trust without having to go to Probate.

Yorkville Estate Planning Attorneys: Providing Peace of Mind and Wealth Preservation

For a single mother, her children are her number one priority, and she wants to make sure she has the right attorney to assist in making sure her last wishes will be followed. At Peace of Mind Asset Protection, LLC our attorneys are both skilled and compassionate so we can understand what you are wanting to do with your assets and create the best estate plan to ensure that happens. We service Kendall County and the neighboring areas; of DuPage County, Grundy County, Will County, and Kane County. To learn more about the benefits of estate planning, give our office a call at 630-780-1034 to set up a free consultation.