Single parent, children, home. Where to start?

[kboyd2005]

What is the name of your state? NY
Hi,
I'm a single parent with 2 young children. We live in NY. I have a home (worth 1mil, owe 400k), whole life policy (500k), 401k (80k), roth (30k). The beneficiary of the life insurance is my mother, and my children are not on the policy.

My goal is to properly insure my life and home. I also want to secure my childrens' futures by making sure they will benefit from the life insurance policies and other financial accounts without a lot of legal red tape and delays. I want to make sure the home goes to them and that they will have the person that I choose to care for them. I am currently the only person named on the deed. I have many questions, and am open to any advice.

1. can/should i put my sibling's name on the deed to my home?
2. do i need to inform the bank that holds the mortgage when i add names to the deed?
3. can/should i put my children's names on the deed?
4. should I add my children as beneficiaries to the life insurance?
5. is it better to have a sibling as the beneficiary or my parent?
6. how do i specify who will take care of my children if something happens to me?
7. when a person appointed as the guardian doesn't choose to be, who will care for the children?

I realize I have let these questions go a very long time, and am just realizing the importance. Thank you everyone.What is the name of your state?

 

[nextwife]

What is the name of your state? NY
Hi,
I'm a single parent with 2 young children. We live in NY. I have a home (worth 1mil, owe 400k), whole life policy (500k), 401k (80k), roth (30k). The beneficiary of the life insurance is my mother, and my children are not on the policy.

My goal is to properly insure my life and home. I also want to secure my childrens' futures by making sure they will benefit from the life insurance policies and other financial accounts without a lot of legal red tape and delays. I want to make sure the home goes to them and that they will have the person that I choose to care for them. I am currently the only person named on the deed. I have many questions, and am open to any advice.

1. can/should i put my sibling's name on the deed to my home?
2. do i need to inform the bank that holds the mortgage when i add names to the deed?
3. can/should i put my children's names on the deed?
4. should I add my children as beneficiaries to the life insurance?
5. is it better to have a sibling as the beneficiary or my parent?
6. how do i specify who will take care of my children if something happens to me?
7. when a person appointed as the guardian doesn't choose to be, who will care for the children?

I realize I have let these questions go a very long time, and am just realizing the importance. Thank you everyone.What is the name of your state?

You are really off base handling this as you are . The house should remain yours. Do NOT add someone else to your house in a misguided attempt to avoid probate.. See an estate planning attorney. If you put sis on the house, it BECOMES partially or fully sis's house, and even potentially goes to HER heirs, rather than YOUR kids. Same with life insurance.

It should go to your kids, or a trust for your kids, not a third party beneficiary!!! You can establish whomever you are comfortable with as trustee, rather than GIVING THEM THE ASSET!

If sis or mom had a creditor trying to collect from them (what if mom, for example someday went into a nursing home?), the way you are currently doing this, the life proceeds could end up going to mom's nursing home. That's just one example.

THis is way too important to mess up by trying to do this in a way that creates all sorts of implications you do not realize.

 

[kboyd2005]

See?! Thanks. I thought I needed to specify an adult as the beneficiary, and had no idea about the implications you listed. So, how do I make sure that my kids get the house, the mortgage is paid, etc? If I elect a trustee, do I need a watchguard over the trustee to make sure my wishes are carried out? Are there firms that do this? I'm really ignorant on this subject for the most part.

 

[CourtClerk]

Just wondering.... why not put your assets in a trust. You can them avoid probate. However... you really SHOULD consult an estate planner as nexie suggested....

 

[nextwife]

Depending upon the combined value of the estate, the trust dept of a bank may or may not make sense. You can specify that the mortgage be paid off, for example. Your kids will also be eligible for SS benefits on your record should you die, so think about protecting the principal.

There is too much at stake to try to DIY. This requires an estate planning attorney. But the worst thing to do is leave the asset to someone other than the party whom you want to actually get it.

 

[kboyd2005]

thanks for the responses

 

[prettymono]

As the others mentioned, go to an estate planning attorney, you can obviously more than afford to...why lose everything you worked so hard to get by not spending a few thousand dollars to protect them? Your attorney can tell you that if you do not "trust" a sibling or parent etc. to handle your assets, ie be your trustee, then you can designate a corporation, such as a bank etc. to handle that for them. You can also provide money for your children, health, education, maintenance and support at different ages, or different years after your death. There are so many options that it is best to seek an attorney. good luck