When I decided to budget a little more carefully, I had no idea how difficult it would be. Fortunately, I was able to talk with a few financial advisors who were able to point me in the right direction. One of the best pieces of advice I received was about setting a realistic budget. I learned how to effectively manage my money, so that I didn't have to worry about paying my bills or letting my accounts overdraft. This blog is designed to help people like me who have previously struggled with money. Check out these articles for financial advice that might help you to set a realistic budget.
When most people hear the words "estate planning," they imagine people with mansions and Rolls Royce sedans plotting out who will inherit their vast wealth when they die. But the most important problem that estate planning solves has nothing to do with luxury assets.
Deciding who will have custody of your minor children in the event of your illness or death is one of the most vital plans you must make as a parent, whether you're a millionaire or you live paycheck to paycheck.
Have a realistic plan for your children's care after you're gone.
Ideally, both parents should consult with each other, and then with family members and friends, to come up with a plan for the future of their offspring. If only one parent dies or becomes severely ill, in most cases, the other parent will take over all parenting duties. But often there is only one parent in the picture, or there is a stepparent or grandparent providing the majority of daily care.
You need to have an open, honest conversation with the people you wish to become guardians of your children before anything happens to you, to be certain they are comfortable with the arrangements you plan to file with the state. Other family members whom you don't wish to be guardians, but who expect to raise your children in the event of your death, should not get an additional shock after you're gone. Make sure to avoid later conflicts and misunderstandings now by discussing your plans with all interested parties, including your children. In some states, your kids do have a say in the matter.
Consider a standby guardianship if one or both parents becomes seriously ill.
If you become disabled and cannot care for your child, or you're diagnosed with a terminal illness, many states will allow you to file a standby guardianship form. This will name a friend or family member as the designated legal caretaker and guardian of your child upon what is called a "triggering event."
A triggering event may be the parent's death, a scheduled surgery and recovery period, or a deterioration of a parent's ability to care for their child.
Standby guardianship laws vary from state to state in their scope and requirements, but most will allow both the parent and the guardian to work together to see to the best interests of the child or children involved.
This guide to standby guardianship is a good overview of how these documents work, but locating a competent estate attorney in your area will be necessary to draft a form that is in compliance with your particular state's laws.
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