Which financial considerations should a young family make to guard against the loss of income?

Most parents have a vision for the financial future of their family but many fail to think about what would happen is there is a divorce, disability or death.

Specific instructions or bequests can be established in a Will or Trust so that certain assets can be used to support children living in a new household with a stepparent following a remarriage.

One of the most important provisions parents can make for their children is the purchase of life insurance.  The death of a primary breadwinner might leave the surviving spouse with insufficient income to provide ongoing maintenance and support.  Inadequate assets or significant debt might compromise the spouse’s ability to raise the children appropriately or even retain the family home.

A disability can also affect household income, particularly if it is long-term.  Income replacement through disability insurance is another option young families should seriously consider.

Life insurance is often used to provide the funds for a child’s education.  Those funds could be placed into a trust where the parents have specified the exact terms for the benefit of the child.

Proper estate planning allows parents to spell out their wishes for the physical and financial care of their children should they be unable to do so themselves.  Your estate planning attorney will help you navigate the complex road to a plan that gives you peace of mind and a sense of security for your family’s future.

If you live in Michigan and need experienced estate planning help, contact Michael Einheuser for a free consultation. Michael helps families in Bingham FarmsTroyFarmington HillsRochester HillsSouthfieldWest Bloomfield TownshipBloomfield Township, and the surrounding Michigan areas.

Schedule your Free Consultation today: (248) 398-4665.

Important Note:  Never name minor children as your beneficiaries on any policies.  If a minor inherits through an oversight such as this, the consequences can be tragic.  The best course is to name our spouse as Primary Beneficiary and your trust Secondary.  Leave specific instructions in your Trust for your Trustee to care for your children.

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