This is no “yo-mama” joke – Single Mother Breadwinners are bringing home the bacon!
A new report shows that 40 percent of all households with children (under age 18) include mothers that are the primary or sole breadwinner for the family. The Pew Research Center reported that in the past five decades, breadwinner moms have increased by almost 30 percent! Furthermore, the research shows that 63% of these lady-breadwinners are single mothers.
Although these single mothers are bustling about to bring home the bacon, fry it in a pan, and serve it to their children before they rush back to work; one important step should not be overlooked – estate planning.
It may seem like there is no time for the breadwinner to collect the crumbs for future planning, but the benefits of safeguarding your “bacon” outweigh the hassle. Single Mother Breadwinners (“SMB”) of South Florida should pay close attention to potential issues when creating an estate plan. Such issues include (but are not limited to):
- Guardianship – if there is no other parent involved, it is important to appoint a primary guardian – the individual who will have custody of your minor children. Creating a will that appoints a guardian will ensure that your child’s interests are protected according to your wishes.
- Trusts – a trust is valuable for many, many reasons. They protect your assets while providing for your minor children. Regardless of whether the SMB has a truck full of Wonder Bread or a jar full of crumbs, she may not want her minor children to receive her assets outright. Rather, she can use a trust, appoint a trustee, and be certain that her assets are being managed and distributed appropriately.
- College Planning, The 529 Plan – a 529 plan allows you (or really, anyone) to contribute to an account that is not subject to federal taxation to save for your child’s college education. There is no age limit for when the plan can be used, and it can roll over to another family member. The SMB can have control and appoint a guardian/trustee to manage it upon her death.
It’s a Wild world, Single Mother Breadwinners. Are you protected?SM
For more information on successful Florida estate planning and business succession planning, please contact the South Florida law firm of Wild Felice & Partners, P.A. at 954-944-2855 to schedule your free consultation.