First Things First

While everyone should properly plan his or her estate, single parents with minor children need it even more. More rests on their shoulders, and many don’t have the same financial resources a two-earner family does. Hopefully nothing happens to them, but are they prepared if something does?

If you’re a single parent with minor children, the first things to do are figure out guardianship of your children, and figure out who will care for you and your children should something happen to you. Once you have guardianship and caretaking figured out, you should make sure your designees have the unfettered powers they need to care for you and your children immediately. This can be accomplished by empowering them with an Advance Directive (with a Designation of Health Care Surrogate), a Durable Power of Attorney, an Authorization for Minors Medical Treatment, a Declaration Naming Preneed Guardian for Minor, and a Declaration Naming Preneed Guardian for Declarant. Even with a Durable Power of Attorney, some banks require a series of procedures for them to accept an outside power of attorney, so you should ask your bank what its policy is (you may have to fill out its form in order to avoid a fight). Get this all squared away as soon as possible.

One Size Does Not Fit All

The cornerstone of any financial plan is insurance. Make sure you have the right amount of coverage, but not too much. A financial advisor can help you develop the right financial plan for you. And don’t think that you can do everything yourself—professionals have the training, expertise, and market knowledge that you’re too busy to get yourself. They exist for your benefit.

Each situation is unique, and one size does not fit all. Maybe you have a former spouse who is the other parent and is still alive. Maybe you don’t. Maybe you used the services of an anonymous donor to conceive your children. Maybe you have a significant other who you want to be in the picture, even though that person is not a parent. Maybe the other parent is unfit for child custody if you are no longer in the picture. Note that the other parent or grandparents may seek guardianship after you pass, and the court may give them preference. See also Section 744.301(1) of the Florida Statutes. Your plans should be prepared in a way that takes this into account (for example, your opinions about this possibility may affect how you structure the distribution of your life insurance proceeds).

The reality is, most people need someone to guide them through the goal development process, help them discover what they want to accomplish, and evaluate the best options to get that done. There are professionals that can help you do this.

Creating a Will

The core document of your estate plan is your Will—don't leave such an important document to an online typing service you see advertising on TV. So, for example, if you have minor children, you might want a testamentary trust to collect the life insurance proceeds; a testamentary trust can put rules in place, like providing for education, not spending cash for a new sports car.

If you recommend someone other than the surviving parent to be guardian, you should list the reasons for doing so, especially if a custodial challenge is expected. As a way of preserving testimony, you should specify why you chose the individual (such as “X has been loving and supportive to my child and has provided care in the form of food and clothing for the past five years”), and why the individual will be a better guardian than the surviving parent (such as “my child loves X and regards him as her father” and “my child doesn’t know her real father, hasn’t seen him in five years, and the father has provided no support and shown no interest in the last five years”).

Other Things to Consider

Your financial plan should be prepared to pay for funeral costs, taxes, and other liabilities before you can consider the needs of your family. Deciding who will be the executor (in Florida, this person is called a personal representative) of an estate is an important decision. Keep in mind that a court needs to agree with your choice, and the person you name needs to be a Florida resident (with some limited exceptions).

Also keep in mind that you will need to keep on top of any Separate Writing you may have attached to your Will. A Separate Writing specifies how tangible personal property will be distributed, but you need to make sure you haven’t already given something away or subsequently acquired something that you want to include. You also need to update your Will as your life changes (such as new children or a new spouse). A good rule of thumb is to reevaluate your Will every year.

The Reality of "Everyone Knows"

You may think that "everyone knows" where you would like your minor children to go and how your assets should be distributed when you pass. That fact is, that isn’t good enough. Put it in a Will, and give a judge the proper direction. Specifying your wishes in a Will makes everything happen more quickly and easily at an already difficult time. You may also make different decisions than the Florida Legislature about how your estate should be handled—creating a Will doesn’t leave those decisions to the probate code.

The Right Will Package for Single Parents

With that in mind, we strongly recommend the following for single parents with minor children:

• Will that specifies both guardianship of any minor children and how assets are to be distributed
• Durable Power of Attorney that empowers another person to handle your financial affairs while you are incapacitated
• Instructions to Custodian of Power of Attorney that gives instructions to the person (or people) who holds the different powers of attorney regarding what powers were created and under what circumstances the papers are to be released
• HIPAA Authorization that allows others to speak with a medical provider about your care
• Advance Directive that has both a living will and a designation of health care surrogate

All the documents named above are part of our Will Based Estate Planning Package for Single Person, which you can get by clicking this sentence. We will work with you (and anyone on your team) to develop the best solution that fits your unique situation, which is especially important for a single parent with minor children.

Other Documents You Probably Need

Other documents that are especially helpful for single parents with minor children are:

• Authorization for Minors Medical Treatment (see Section 743.0645(2)(a) of the Florida Statutes); and
• Declaration Naming Preneed Guardian for Declarant (it gives someone legal guardianship power if you become incapacitated. See Section 744.3045 of the Florida Statutes;
• Declaration Naming Preneed Guardian for Minor (Parents may also nominate a preneed guardian for their minor children to act in the event of their incapacity or demise.) See Section 744.3046 of the Florida Statutes.

The first document gives powers and directions to people who may be the only ones available when the moment of need comes, even if you’re not there. It qualifies for a power of attorney under F.S. 743.0645(2)(a)

The advantage of the second document is that the guardian may immediately assume control of the guardian responsibilities upon an adjudication of incapacity. This avoids guardianship proceedings when you’re incapacitated and have no say in the selection of a guardian. A Declaration Naming Preneed Guardian for you (there are different rules for minors) may be filed with the clerk of the court, and the clerk will produce it when a petition for incapacity is filed. See F.S. 744.3045(3). Keep in mind that the filing of a case to determine if someone is incapacitated will put a durable power of attorney on hold, and may render it ineffective, so you should work with an attorney on setting up all of this.

The advantage of the third document is that the preneed guardian assumes his or her duties with respect to the minor upon the adjudication of incapacity or the death of the last surviving parent. Keep in mind that the declaration must be executed by both parents, if living, and it must be filed with the clerk of court (unlike the one for you, which is optional to file); the clerk will produce the declaration when a petition for incapacity of the last surviving parent is filed or upon the death of the last surviving parent. See F.S. 744.3046.

Get Legal Help Online When It's Convenient for You

The way we can deliver legal services fits many single parents’ lives. Clients don’t pay a costly retainer, they can do their work online, we can communicate our end over computer or by phone, and clients pay for legal services by credit card. Clients get all that as well as an attorney who customizes the best solution for their situation. And we are always available to answer questions.