Estate Planning for Families with a Stay-at-Home Parent in Missouri

When a family begins thinking about estate planning, it is easy to focus on the spouse who earns the family’s income. But a comprehensive estate plan should protect both parents and the important roles each parent plays in the family.

For families with a stay-at-home mom or dad, estate planning can be especially important. Although a stay-at-home parent may not receive a paycheck, their work caring for children and managing the household has significant financial value. If that parent dies or becomes incapacitated, the surviving parent may suddenly need to pay for childcare, household help, transportation, education, and other services the stay-at-home parent previously provided.

Working with an experienced Missouri estate planning attorney can help families prepare for these possibilities and create a plan that protects both parents and their children.

Life Insurance Should Account for Both Parents

Life insurance is an important part of many families’ estate plans. While it may be relatively straightforward to estimate the financial impact of losing the income-earning spouse, families should also consider the economic value of the stay-at-home parent’s contributions.

Consider what would happen if the stay-at-home parent were no longer available to provide daily care and manage the household.

For example:

• How much would full-time or part-time childcare cost?
• How long would the children need additional care?
• Would the surviving parent need to hire someone to cook, clean, do laundry, or manage other household responsibilities?
• If the children are homeschooled, would another educational arrangement be necessary?
• Would private school, tutoring, transportation, or other educational expenses become necessary?

These expenses can add up quickly. Life insurance should be considered as part of a broader estate plan designed to provide the surviving parent with the financial resources needed to maintain stability for the children.

Plan for More Than Death

Estate planning isn’t only about what happens after someone dies. A good estate plan should also address incapacity.

If a stay-at-home parent becomes seriously ill or incapacitated, the family may face many of the same challenges that arise after death—but without the life insurance proceeds that would typically accompany a death.

Parents should consider who could step in to care for the children and help manage financial and household responsibilities if one or both parents become unable to do so.

An estate planning attorney can help a family prepare documents that address these circumstances and establish who will have authority to make financial and healthcare decisions when a parent cannot make those decisions independently.

Choosing a Guardian for Minor Children

Parents of minor children should carefully consider who would care for their children if the parents were no longer able to do so.

A will can be used to nominate a guardian for minor children. Parents should discuss their wishes with the prospective guardian in advance and consider factors such as:

• The guardian’s relationship with the children
• Their ability and willingness to provide day-to-day care
• Their values and parenting philosophy
• Where the children would live and attend school
• Whether siblings could remain together

Choosing a guardian is one of the most important decisions parents can make as part of their estate plan. It is also important to understand that simply naming someone in a will does not eliminate the court’s role in a guardianship proceeding. An experienced Missouri estate planning attorney can help parents understand the process and coordinate their estate plan accordingly.

Consider a Trust for Your Children’s Inheritance

Parents should also consider how their children would receive an inheritance if something happened to one or both parents.

Leaving assets outright to a minor child can create significant practical and legal complications. A properly designed trust may allow a responsible trustee to manage assets for the child’s benefit and use those funds for expenses such as education, healthcare, housing, and other needs.

Trust planning can also provide greater control over when and how children receive inherited assets. Rather than giving a young adult unrestricted access to a substantial inheritance, parents can establish terms that reflect their family’s circumstances and goals.

A trust can also play an important role in protecting a child’s inheritance after the surviving parent’s death, including situations in which the surviving parent later remarries. The appropriate structure will depend on the family’s assets, relationships, and goals, which is why individualized legal advice is important.

Build an Estate Plan That Protects the Whole Family

A stay-at-home parent may not bring home a traditional paycheck, but the value of their contributions to the family can be substantial. Childcare, education, household management, transportation, and daily family responsibilities can be difficult and expensive to replace.

For Missouri families, estate planning should account for both parents—not simply the spouse who earns the family’s income. Life insurance, wills, trusts, guardianship planning, and incapacity documents can work together to provide financial protection and help ensure that children are cared for according to their parents’ wishes.

Estate planning is ultimately about preparing your family for circumstances you hope never happen. Taking the time to create and regularly review a comprehensive plan can provide greater protection and peace of mind for both parents and their children.

Frequently Asked Questions

1. Does a stay-at-home parent need an estate plan?

Yes. Every parent should consider having an estate plan, regardless of whether they earn an income outside the home. A stay-at-home parent’s estate plan can address guardianship, incapacity, healthcare decisions, financial management, and how assets will be managed for their children.

2. How much life insurance should a stay-at-home parent have?

There is no single appropriate amount for every family. Parents should consider the cost of replacing the stay-at-home parent’s contributions, including childcare, household services, transportation, education, and other expenses. A qualified estate planning attorney and insurance professional can help families evaluate their individual circumstances.

3. Should parents with minor children have a trust?

A trust may be appropriate for families who want to control how and when their children receive an inheritance. A trust can allow a trustee to manage assets for a child’s benefit and provide funds for education, healthcare, and other needs. Whether a trust is appropriate depends on the family’s circumstances and estate planning goals.

4. What happens to my children if both parents die or become incapacitated?

Parents can use their estate plan to nominate people they trust to serve as guardians for their minor children. They can also establish financial arrangements, such as a trust, to help ensure that resources are available for their children’s care. Because guardianship and trust laws can vary by state, Missouri parents should work with an experienced Missouri estate planning attorney to make sure their plan is properly prepared and coordinated.

Protect Your Family With a Comprehensive Estate Plan

Your family’s estate plan should reflect the value of every parent and every role within your household. Preparing for incapacity or death can help protect your children, provide financial resources for their care, and give your family greater confidence about the future.

Contact Beck, Lenox & Stolzer Estate Planning & Elder Law, LLC for all of your estate planning needs by booking a call: https://beckelderlaw.com/book-a-call/

Reference: The News Enterprise (May 25, 2024) “Stay-at-home parents must be deliberate about estate plans”