In part 1 of this blog series, we discussed your assets and minor children if you die without an estate plan. For Tennessee parents, not having a plan means a judge — who doesn’t know your family — decides guardianship, asset control, and inheritance for your minor children. The standard is “the best interest of the child.” Still, a judge who does not know you or your family’s circumstances makes this decision with minimal information on what is best.
Fortunately, a good estate plan can allow you to make those crucial decisions that will be in the best interest of your minor children in case of your death or incapacitation. Here are the key estate planning tools Tennessee parents should consider to secure their family’s future:
Wills: Naming Guardians and Directing Assets
A will is the foundational estate planning document. It is the document that allows you to direct our assets upon your death and nominate the guardian for your minor children upon your death. By creating a will, parents in Tennessee can ensure that custody decisions are made by them — not the court. This trusted guardian would take over custodial care for your minor children in the event of your passing.
Trusts: Protecting and Managing Assets for Children
A trust is a highly flexible document that provides even greater control and security that their children will be well cared for. Some benefits include:
- Avoiding the probate process, which in Tennessee can last six to twelve months or more and cost thousands of dollars.
- Allowing parents to decide how long assets should remain in trust for minor children. Instead of an automatic inheritance at age 18, you can set guidelines based on maturity and need.
- Protecting trust assets from creditors, as long as they remain in the trust.
A trust gives Tennessee parents peace of mind knowing their children’s financial future will be managed according to their values and timeline.
Powers of Attorney: Ensuring Care if You’re Incapacitated
A power of attorney is a document that allows another person to act on your behalf in case of your incapacitation. A thoughtful estate plan will include:
- A general durable power of attorney for financial tasks such as paying bills, filing tax returns, and managing bank accounts.
- A healthcare power of attorney to make medical decisions if you are unable to do so.
With powers of attorney in place, someone you trust can use your assets to care for your children and make important medical and financial decisions without waiting on the court.
Next Steps for Tennessee Parents
The best first step to secure your family’s future is sitting down with a licensed estate planning attorney. At Linville Estate Law we help parents across Nashville, Brentwood, and Middle Tennessee create customized estate planning solutions that protect their children.
You can make an appointment by clicking here to schedule a FREE discovery call and see what estate planning solution is right for your family. Don’t leave your child’s future to chance — create an estate plan that puts you in control.
