Learn about making will or living trust for single mothers finance management by single mother.
Making Will or Living Trust for Single Mothers
Handling finances or money management for single mothers is crucial as they mostly have to manage their families on single incomes and have to protect their and their children�s interests and safeguard their future too. They also need to make sure that in case something happens to them, their children will not suffer in the hands of destiny. Getting a life insurance is a must for single moms, even if only for the peace of mind and the urge to make the children�s future secure. Similarly, making a will to protect the assets to be used by children is very important too.
The birth father can also be a big threat when it comes to claim the assets as the beneficiary at the moment and leaving nothing to the children. A properly documented �will� will prevent this from happening. However, a living trust can be the best option for single moms. Here are some of the reasons:
- A conventional will requires probate process or the process of legally establishing the validity of a will before a judicial authority. It can take a long time that may extend up to two years and can cost up to 8% of your property or estate such as life insurance or other assets. Living trusts avoid this process.
- A living trust is difficult to challenge and hence is rarely contested by child�s father or other relatives �hoping� to benefit from you, thus keeping your money safe from prying hands.
- Living trust is created, activated, managed and controlled by you, while you are alive and well.
- Living trusts are portable. So, unlike other type of trusts, you don�t have to revise them, if you move to another state.
- Living trusts cost more than wills but in the long run, living trusts are worth the difference in costs. The costs for kind of trust are tax-deductible and they have no annual court accountings or legal fees attached to them.
- There can be court delays in wills but a living trust allows the trustee to collect life insurance immediately.
- While will or trust under a will is a public record, a living trust is private and hence, it becomes difficult for other people not connected with it to access it.
