What Happens to My Child If I Die?

Death can be harder on children if appropriate plans weren't made.

The death of a parent can be a terrible blow to any child. Matters become even more complicated when the parent failed to make appropriate arrangements for the child's care before the parent's passing.

Childcare

An essential part of caring for your child's needs after you're gone is to select a proxy. A proxy is a person to whom you entrust the needs of your child should something happen to you. This person can be expected to look after your child's physical well-being, education, and sometimes even religious instruction.

Trusts

A good way to look after your child's financial future, if you have the means, is to set up a trust fund in your child's name. Trust funds aren't only for the very wealthy--anyone can initiate them. A trust fund allows you to put assets aside in your child's name so that the funds generated from them are used for the child's, and only the child's, future needs.

Considerations

If there is no assigned proxy, your childrens' care is traditionally undertaken by the next of kin. If no next of kin can be found, foster care might be the only option to provide for their basic necessities. Without any funds for living essentials via a trust, many foster children are put on welfare until they reach the legal age of 18.

References

• Losing Someone You Love: Dealing With Death and Dying (Issues in Focus Today); Tracy Phillips; 2009