Single parents have special financial planning needs

KNOXVILLE (WATE) - The premature death of a single parent has devastating consequences for the children involved.

There is no way for single parents to guarantee they will live long enough to see their children fully-grown, but they can easily provide some financial protection if they should die early.

Certified Financial Planner John Fawaz suggests you do three things if you are a single parent to secure your family's future:

• Update your will and select a guardian for minor children. If you don't the court will. Minor children should not be named as beneficiaries. They can have full access to the estate when they turn 18. Consider using a trust, which can provide some control over the estate after your death.
  
• Leave written instructions. Most people who have wills fail to provide the additional instructions are important for the family to know. A page or two of instructions can make it easier for your children's guardian to know how you want your children raised. You can also specify how you want your assets managed, and used to benefit and protect your children.
  
• Fund your children's future needs with life insurance. Because most parents of young children are themselves relatively young, Term policies are ideal and inexpensive for this purpose. To figure how much life insurance is needed calculate that a $100,000 policy can replace of $500 monthly income. If you think your child will need $2000 per month, then you need a $400,000 policy.

John Fawaz appears every Tuesday on Good Morning Tennessee.