Part 1 of a 2-Part Series
In 1984, Congress issued a resolution, signed by President Reagan, establishing March 21st as National Single Parent Day. He made it a day to recognize single parents. Millions of American single mothers and fathers demonstrate self-sacrifice in caring for their children’s needs. The designation is meant to encourage family members, friends, and communities to help provide an optimal environment for children. As a single parent, be proud of your efforts to nurture and care for your children. In this, the first in a two—part series, we share additional steps to take to provide for your children’s future, which you may not have considered. They emerge imperative in this current climate of uncertainty, amid the COVID-19 pandemic.
Name a Guardian
If your children’s other parent is willing and able to care for them if you unexpectedly die, he or she will likely be given physical custody of the children. In the case of single parents, however, the other parent often may not be able or willing to assume this role. So, it is crucial for you to name a guardian to step into your shoes to provide day-to-day care for your children if something happens to you. If you fail to name a person you trust, a court will step in to appoint someone. The court may not choose the person you would have chosen. Therefore, it is vitally important that you designate your choice in advance. Name a guardian in your will. In some states, you can use a separate document for this purpose. Although the court will still appoint the guardian, they will typically defer to your wishes.
In coming to a decision, keep these factors to keep in mind:
- Does your chosen guardian share your values and parenting style?
- Will your chosen guardian require your children to relocate?
- Does your chosen guardian have the energy and stamina needed to care for your children?
- Do they have the time to be an involved caregiver?
- Do you want more than one guardian to care for multiple children, or do you prefer for the children to stay together? It is important to weigh the importance of these considerations in making your decision.
Create a Custodial Account
Children are minors. So, you can establish a custodial account to hold an inheritance under a law called the Uniform Transfer to Minors Act or the Uniform Gifts to Minors Act. If you do not appoint the custodian, the court will appoint someone to control and manage your children’s inheritance until they reach a pre-set age of majority. This is necessary because minors legally cannot own money or property on their own.
A custodian will manage the funds in the account for the benefit of your children, but the downside is that when they reach the age of majority (18-21 years old depending on applicable state law), the funds will be distributed to them in a lump sum. At that point, they can spend the money as they wish, which may not be optimal for a young person who is not yet mature enough to make prudent financial decisions. In addition, any present or future creditors could try to reach your children’s inheritance to satisfy their claims. If you do not appoint the custodian, the court will appoint someone to control and manage your children’s inheritance until they reach a pre-set age of majority. This is necessary because minors legally cannot own money or property on their own.
Check back next week when we conclude this two-part series.
About Skvarna Law Firm in Glendora and Upland, California
Skvarna Law Firm operates offices in Glendora and Upland, California. We provide legal services for individuals living in San Bernardino, Los Angeles, Orange and Riverside Counties. This includes several cities — Upland, Ontario, Rancho Cucamonga, Fontana, Colton, Rialto, Chino, Chino Hills, Glendora, Claremont, Pomona, La Verne, Montclair, San Dimas, Azusa, Covina, West Covina, Diamond Bar, Walnut, La Puente, Corona, Norco & Mira Loma. Visit SkvarnaLaw.com to learn more.
