Covenant CPA

  • About CCG
  • Our Team
    • Raiford “Ray” Dyer Jr.
    • Meredith Baxter
    • Larry B Frost
    • Jamie Lambert
    • Morgan Hulsey
    • Susan Harper
    • Khialee Boyles
    • Cindy Hayes
  • Services
    • Accounting & Assurance
    • Tax Advisory
    • Litigation Support
  • Press
    • Business Management
    • College Saving & Spending
    • Estate Planning
    • Fraud Prevention
    • Gift Tax
    • Household
    • Individual
    • Investing
    • Owning a Small Business
    • Retirement
    • Tax Returns
    • Vehicle
  • Events
  • Contact CCG
(205) 345-9898

4 questions single parents should ask about their estate plans

4 questions single parents should ask about their estate plans

by Morgan Hulsey / Wednesday, 13 January 2021 / Published in Estate Planning, Household

Did you know that the United States has the highest rate of children living in single parent households? According to the Pew Research Center, nearly a quarter (23%) of U.S. children under the age of 18 live with one parent. This is more than three times the share (7%) of children from around the world who do so. If your household falls into this category, ensure your estate plan properly accounts for your children.

In many respects, estate planning for single parents is similar to estate planning for families with two parents. But when only one parent is involved, certain aspects of an estate plan demand special attention.

If you’re a single parent, here are four questions you should ask:

1. Are my will and other estate planning documents up-to-date? If you haven’t reviewed your estate plan recently, now is the time to do so to ensure it reflects your current circumstances. The last thing you want is for a probate court to decide your children’s future.

2. Have I selected an appropriate guardian? If the other parent is unavailable to take custody of your children should you become incapacitated or die suddenly, does your estate plan designate a suitable, willing guardian to care for them? Will the guardian need financial assistance to raise your kids and provide for their education? If not, you might want to preserve your wealth in a trust until your children are grown.

3. Am I adequately insured? With only one income to depend on, plan carefully to ensure that you can provide for your retirement as well as your children’s financial security. Life insurance can be an effective way to augment your estate. You should also consider disability insurance. Unlike many married couples, single parents generally don’t have a “backup” income in the event they can no longer work.

4. What happens if I remarry? Will you need to provide for your new spouse as well as your children? Where will you get the resources to provide for your new spouse? What if you placed your life insurance policy in an irrevocable trust for your kids to avoid estate taxes on the proceeds? Further complications can arise if you and your new spouse have children together or if your spouse has children from a previous marriage.

If you’ve recently become a single parent, contact us because it’s critical to review and, if necessary, revise your plan. We’d be pleased to help.

© 2021 Covenant CPA

Tagged under: children, single parent, spouse

Recent Posts

  • Make your fraud contingency plan a blueprint for swift action

    Over the past year, most businesses have been f...
  • 4 questions single parents should ask about their estate plans

    Did you know that the United States has the hig...
  • Need another PPP loan for your small business? Here are the new rules

    Congress recently passed, and President Trump s...
  • The COVID-19 relief law: What’s in it for you?

    The new COVID-19 relief law that was signed on ...
  • New year, new fraud to watch out for

    Whew, you made it through 2020! But don’t rest ...

ABOUT CCG

Covenant Consulting Group LLC (CCG) was founded in 2007 when our partners decided that clients deserved a holistic approach to better service and attention. CCG takes the best parts of a consulting firm and combines them with the best parts of a traditional CPA firm.

CONTACT CCG

(205) 345-9898

info@covenantcpa.com

TEAM NEAR YOU

Tuscaloosa: (205) 345-9898
Northport: (205) 345-9898
Birmingham: (205) 757-8308
Atlanta, GA: (404) 348-0593
Starkville, MS: (662) 268-6128

  • About
  • Press
  • Accounting & Assurance
  • Tax Advisory
  • Litigation Support

Copyright © 2018 Covenant CPA LLC. All rights reserved.

Webite by J. Ferragut

TOP