Do You Have a Plan to Protect Yourself and Your Children if Your Spouse Dies? 

The prospect of losing a spouse is a frightening and saddening one. No one likes to think about what would happen to their family were their spouse to die, but it is wise for a family to consider the possibility during estate planning. It is essential to know how you would keep going after the death of a spouse – especially for families with young children. An estate planning attorney can work closely with your family to build a plan to protect you and your children’s financial well-being in this event. 

What Ways Can I Protect Myself and My Children if My Spouse Dies? 

First, both you and your spouse should have at least a basic will or trust in place to make sure anything one of you owns will pass to your spouse and children as smoothly as possible. There are a few other steps you can take to make sure you and your children are financially protected in the event that you lose your spouse. 

• Joint Accounts – It may be best to have both your and your spouse’s names on any bank accounts, investment accounts, or other financial accounts. This way, if your spouse dies you will have uninterrupted access to your joint funds and in most cases, there is little else you will need to do after your spouse dies to gain complete ownership of the account. 
• Joint Property – Your estate planning lawyer may recommend that your family home and other major property holdings be in both of your names to make matters easier should one of you pass away. An attorney can help you minimize or eliminate tax and probate fees when transferring jointly owned property.
• Beneficiary Designations – Make sure your designated beneficiaries on your 401(k) and other retirement savings accounts are current and that your spouse has you listed as a beneficiary along with your children. 
• Life Insurance – Life insurance is one of the best ways to protect a family in the event that one parent dies. Purchasers can choose whole life insurance, in which coverage lasts until a person has died. This is often the more expensive option but is guaranteed to pay out. Or, term life insurance is an option. This type of plan may be less expensive but only pays out if the purchaser dies during the term of coverage. 

Talking about the possibility of losing your spouse may be uncomfortable, but a little temporary discomfort here can mean the difference between financial security and financial hardship for a family. All this planning can become a hassle, and it does cause some expenses in the short term. However, planning for the possible loss of a parent gives your family peace of mind – an invaluable gift. 

Call an Illinois Estate Planning Attorney Today

If you have a spouse and children at home, take the first step towards planning for their financial security by contacting the Gierach Law Firm. Our Naperville estate planning attorneys will discuss all your options with you and find the plan that works best for your family. Call 630-756-1160 to set up a confidential consultation. 

Source: 

CBS